[relkor]

When someone sees a market inefficiency that everyone else was ignoring, and then solves it, they are in position to collect economic rents until others catch up. The problem that was solved was not imaginary, it was real, and people are suddenly able to pay to remove this problem. This is clear throughout history as first movers have successfully implemented local monopolies with varying degrees of scale.

[JadeNB]

> When someone sees a market inefficiency that everyone else was ignoring, and then solves it, they are in position to collect economic rents until others catch up.

PG, for example: http://www.paulgraham.com/avg.html . :-)