- Posted by Jeff Carter on March 10th, 2014 at 9:21 am
The world is becoming flatter. Cellphone and tablet technology make every person a node on the network, and able to take action to some stimuli. It’s possible for business to reach them in real time, and at the place where they are likely to react. It’s possible for ordinary people to do extraordinary things. Glenn Reynolds wrote about this in An Army of Davids.
In a simple terms, back in the dark ages when I was in college, if you made plans ahead of time to meet at a certain place-you got there. There was no texting or calling to re-arrange plans on the fly. Once an appointment was made, you were committed. Now, things can always change rapidly. People can do anything from anywhere. Commitment to certain things isn’t as strong as it once was. Humans are much more efficient.
Here is the other slide that I stole from Chris Dixon.
Put the two slides together and let your mind start to brainstorm. Where can we utilize mobile technology to create market efficiencies on the fly in real time? Where can people meet independently, online, in real time, to transact? To derive a transparent “price” that allows others to be more efficient?
There are companies out there that operate a monopsony now. It’s there because of historical reasons, or because they have actively used the government to help them keep their hold on the market through regulation. Other companies have oligopolies. Regulation, costs to enter the business and history have given that to them. These companies carefully tend their monopsony or oligopoly garden.
Big monopsonies have little incentive to innovate. Their views on the world get narrower and narrower. You might hear executives of those companies say, “We are sticking to our knitting”, or, “We are concentrating our efforts in our core businesses.”, or “We don’t think that’s our business.”. They are ripe. The internet army can create fast moving networks that can topple monopsony. When the walls crash, entire industries are transformed. Look at the music/media/publishing industry. It looks nothing like it did 10 years ago.
In the next ten years, I think we will see a lot of walls crashing down. What other industries are out there that can be similarly transformed?
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Missing The Point
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Posted by Jeff Carter on March 5th, 2014 at 8:04 am
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It Pays To Go Faster
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Posted by Jeff Carter on February 28th, 2014 at 4:54 am
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The Mt. Gox BlowUp, and Predictable Responses
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The explosion of electronic trade has caused a corresponding explosion of ways to trade. That sounds stupid. There is only one way to trade now-and [...]
ICE Chief Takes Lead On Market Reform
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One of the reasons I started this blog in 2010 was because I thought that the general public was pretty misinformed when it came to [...]
Markets Are Efficient
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There is an interview in Playboy with the founder of Gawker. He has been a highly successful entrepreneur. A lot of things in the article [...]
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Chicago was awarded a $70M dollar grant from the Federal government to create UI Labs. A laboratory for the future of manufacturing. After private companies [...]
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Mobile Is Highly Fragmented, That’s Opportunity
Posted by Jeff Carter on February 21st, 2014 at 6:50 am
There is still fall out from the Facebook ($FB) acquisition of WhatsApp. Yesterday, I linked to Benedict Evans excellent analysis and today I saw this [...]
Jeffrey Carter is an angel investor and independent trader. He specializes in turning concepts into profits. He co-founded Hyde Park Angels one of the most active angel groups in the United States in April of 2007. He previously served on the Chicago Mercantile Exchange Board of Directors. He has done market commentary for (More...)
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