|
|
|
|
|
|
by wmf
2692 days ago
|
|
|
Who has 4-5 taxi apps on their phone? Who has 2-3 social profiles? Who has the habits of jumping from a searching engine to another? Uber, Lyft, and some smaller competitors already exist yet people don't need all the apps; they just choose one and it works fine. Likewise with search engines: some people use Google, some use Bing, some use DDG. It's suboptimal but monopolies are suboptimal in different ways. The problem with network effects was solved in the 1980s breakup of AT&T where the telcos all federated with each other. Federated protocols like SMTP and XMPP existed before Facebook and Twitter; rather than a historical accident they made a decision to pursue lock-in. |
|
|
To me, the problem comes when you provide a service. The service market seems much more difficult to diversify than the product market. When the need is well filled by one company, it is difficult to keep competition alive. It is obviously not binary. It depends on the service.
For instance, for the product side; Nike, Adidas, etc. are constantly trying to improve and change their products to keep up with the complex shoe market even if they are pretty colossal companies. Because the user need for a new shoe pair is coming on a really short scale and the competition is fierce.
I'm not seeing the same kind of competition with services. When you use a service that fills the need, you don't change in general. Or at least, people change on a very long scale. Some times, it even takes a cultural shift to change habits.
On the google vs bing example: Well, ok some uses bing, but in majority because microsoft makes it easy to do so on their systems ;-). There exists some very good alternatives, like duckduckgo, but it represents a minority.