Aggregation Theory
Pre-Internet:
- Middlemen controlled supply
- Profits by controlling supply
Internet:
- ease of creation and distribution for everyone
- Easy to add new customers
- Profits by controlling demand
Wealth Creation
- Money is "only" a medium of exchange
- There is no fixed amount of wealth and everyone can easily create it (see aggregation theory above)
- In Startups / small groups the work can be measured directly —> higher motivation
- new technology / invention means leverage —> value is multiplied by all the people who use it (compared to conventional market decades ago)
Forms of Leverage
Labor as the oldest form of leverage —> messy and needs very good leadership skills —> high concurrence
"Products with no marginal cost of replication" as the best and most effective form
