Comments on: Socially Created Value http://madisonian.net/2005/12/09/socially-created-value/ a blog about law, tech, culture, and related things Thu, 10 May 2012 20:32:56 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: MT http://madisonian.net/2005/12/09/socially-created-value/comment-page-1/#comment-20784 MT Sun, 25 Dec 2005 01:20:49 +0000 http://madisonian.net/?p=459#comment-20784 I've <a href="http://murkythoughts.blogspot.com/2005/10/anthropology-of-intellectual-property.html" rel="nofollow">blogged a little</a> about the social incentive for creativity and how it gets monetized. I’ve blogged a little about the social incentive for creativity and how it gets monetized.

]]> By: Seth Finkelstein http://madisonian.net/2005/12/09/socially-created-value/comment-page-1/#comment-20612 Seth Finkelstein Sat, 10 Dec 2005 01:06:38 +0000 http://madisonian.net/?p=459#comment-20612 "Only a relatively few savvy businesses ..." No big mystery. The problem is that data-mining is *hard*, and LOW-MARGIN. Whereas rent-seeking with a monoply is, if not exactly easy, not as hard, and with substantial higher margins. Note there are lot of business gurus trying to make money off being advocates of low-margin data-mining, rather than actually going into the business of low-margin data-mining. That should tell you something about the industry. “Only a relatively few savvy businesses …”

No big mystery.

The problem is that data-mining is *hard*, and LOW-MARGIN. Whereas rent-seeking with a monoply is, if not exactly easy, not as hard, and with substantial higher margins.

Note there are lot of business gurus trying to make money off being advocates of low-margin data-mining, rather than actually going into the business of low-margin data-mining. That should tell you something about the industry.

]]> By: MT http://madisonian.net/2005/12/09/socially-created-value/comment-page-1/#comment-20609 MT Fri, 09 Dec 2005 17:26:54 +0000 http://madisonian.net/?p=459#comment-20609 How does a horse monopoly become a car company, before cars have been invented? That a battleship of industry ever adapts, as a rule of thumb, must be due to its head start and deep pockets, so if the guys in their R&D department invent only a moped, the corporation can hang in there and outlast and coopt the guys who invent the car. I guess the liability to worry about is that WaPo won't have the money to buy out the inventers of the business model we're waiting for--or they'll be outbid by Murdoch. But there's culture and idealism in the blogosphere too. A new kind of business with 10,000 Ben & Jerry's as partners might be picky about who they allow to buy them or under what terms they'll accept venture captial. How does a horse monopoly become a car company, before cars have been invented? That a battleship of industry ever adapts, as a rule of thumb, must be due to its head start and deep pockets, so if the guys in their R&D department invent only a moped, the corporation can hang in there and outlast and coopt the guys who invent the car. I guess the liability to worry about is that WaPo won’t have the money to buy out the inventers of the business model we’re waiting for–or they’ll be outbid by Murdoch. But there’s culture and idealism in the blogosphere too. A new kind of business with 10,000 Ben & Jerry’s as partners might be picky about who they allow to buy them or under what terms they’ll accept venture captial.

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