Re: [tlug] Amazon Kindle

[CL <az.4tlug@example.com>]

Stephen J. Turnbull wrote:
> burlingk@example.com writes:
>
>  > It would be arguably better for the companies, in that it would
>  > increase potential consumer base all around.
>  > 
>  > I know most companies don't look at it that way though. :/
>
> They're right, you're wrong.  Openness to increase the consumer base
> only makes sense in a context where there are strong network
> externalities and weak (or negative) economies of scale in
> production.  Otherwise, all that happens is a winner-take-all price
> war.

I believe that The Divine Gospel of Saint John Maynard says "... only 
makes sense UNTIL there are strong network externalities."

> It doesn't mean there isn't hope for "rational openness", but the
> argument you make is a non-starter.

A non-starter _today_ but not always.  I would expect the market to 
begin to rationalize within the next two years and progress along the 
line of the music player software shakeout.  Given the media, though, I 
would not foresee the shakeout being faster for books than for music 
even though the pathways would be similar and recognizable to consumers.

But .. I am not an economist nor do I portray one on daytime television ...

--
CL