Archive for May 16th, 2011

Seen broadly, it’s clear that the story of the Long Tail is really about the economics of abundance — what happens when the bottlenecks that stand between supply and demand in our culture start to disappear and everything becomes available to everyone.
    —    Chris Anderson
From his book :  “The Long Tail
[Anderson believes that given the availability of knowledge of something, its price can fall substantially and profit increase in greater proportion because the volume sold will increase at a greater proportion than the price decrease.  This may be true in the realm of bits and bytes – selling music and e-books, but it is not clear it is true for “atoms” – homes, cars and food.  For sales of atoms, people and space are involved and people / space do not scale up for volume the way servers can scale up for downloading bits and bytes.
Also, and perhaps more importantly, it seems to me unlikely the price will fall to zero (or near zero), so the true issue is not knowledge of availability, but do you personally have the funds to pay for something.    —    KMAB]

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