Although the top 1 percent and 0.01 percent have seen record increases in their earnings, the superstar economy has faced a few headwinds. Perhaps the most important among these is the growth of the long tail—the increased availability of niche products and services. Technology has not just lowered marginal costs; in many cases it has also lowered fixed costs, inventory costs, and the costs of searching. Each of these changes makes it more attractive to offer a greater variety of products and services, filling small niches that previously went unfilled. Instead of going head-to-head with a
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