2-1c1a2 The attract-extract cycle - Bigger networks have less to gain and more to lose by interoperating

Next:

• 2-1c1a3 Platforms eventually cannibalize their complements

Related:

• Why we see more vertical integrations:
  • 2-1c2b Forced vertical integration made Tesla intimately familiar with the complex supply chain required to build a car. Good counter-argument to outsourcing everything.
  • 5-1b1a7 Technology’s ‘function’ consists of many parts, and you have to have an explanation for how each contributes to the whole (i.e., ‘vertically-integrated’)
• This per se isn’t bad at all
  • You are letting each specific problem to be addressed by the best company out there
    • 2-1c1 ‘Comparative advantage’ - If others can do it, let them
  • Only low cost operators can reach that ‘extract’ cycle—but consumers also benefit (‘extract’) from deflation in that specific product
    • 3-1a4b8 With few exceptions, buy on the cheapest market and sell on the dearest leads to satisfaction of the most highly valued ends of each individual, both as consumer and as a producer
• I.e., cooperation early and competition later
  • 2-1c3 ‘Win and help win’ always outcompete
• 12-1a2c Digital network can solve the problem of network defects (both as a failure and a political defection) because not constrained by the arbitrary state and its physical borders means it doesn’t get too big or too complex

Contradictory?

• National BankAmericard Inc. (NBI) became Visa by adopting equal ownership
  • <> the Control Structure