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