| Message Number: | 802 |
| From: | James W Mickens <jmickens Æ eecs.umich.edu> |
| Date: | Sun, 9 Sep 2007 19:13:56 -0400 (EDT) |
| Subject: | Re: mind the gap |
> James, I think you're empirically wrong that wealth creation is anything like > a zero-sum game and I'm working on my response! I think that the basic laws of economics are against you here. Trixie's example of market share is a good one. Given a finite number of people willing to pay for a service, the wealth acquisition of one service provider is often in direct opposition to that of another. Even if the customer base is growing, there's no guarantee that there's enough demand for multiple businesses to run at their full profit capacity at a given moment. There's certainly not enough room for multiple businesses to expand at arbitrarily large rates forever. Once the customer base for widgets reaches its saturation size, consumers will buy widgets from someone who is you, or someone who is not you. If they buy from you, this increases your wealth while decreasing that of your competitors, and vice versa. I don't think that this is a radical idea. CEOs talk about stealing market share from other businesses all the time. Are they fundamentally confused about how businesses work? ~j

