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The fundamental utility of inflection bubbles comes from their role as coordinating mechanisms. When one group makes investments predicated on a particular vision of the future, it reduces the risk for others seeking to build parts of that vision. For instance, the existence of internet service providers and search engines made e-commerce sites a better idea; e-commerce sites then encouraged more ad-dependent business models that could profit from directing consumers. Ad-dependent businesses then created more free content, which gave the ISPs a better product to sell. Each sector grew as part ...more
Boom: Bubbles and the End of Stagnation
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