[p2p-research] Artificial Scarcity Is Subject To Massive Deflation | Techdirt

Paul D. Fernhout pdfernhout at kurtz-fernhout.com
Thu Nov 5 13:45:26 CET 2009

"In discussing the basic economics of scarce and infinite goods around here, 
sometimes certain points get lost or confused. One of the key points that 
we've tried to make (but that sometimes gets lost), when we say that an old 
model is obsolete or going away, is that you can try to hang onto that 
business model, but the economic trends are clear: it's not going to last. 
So, you can try to keep charging for information in a highly competitive 
market, and maybe you can pull it off for a little while. But betting your 
future business on it alone? Good luck.
   The Citizen Media Law Group points us to an even better explanation of 
this very point, by Eric Reasons, noting that artificial scarcity is facing 
massive deflation. It's such a great concise way of making the point, I wish 
I'd thought of it:  ..."

--Paul Fernhout

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