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Experiences with finite variability become less engaging because they eventually become predictable. Businesses with finite variability are not inferior per se; they just operate under different constraints. They must constantly churn out new content and experiences to cater to their consumers’ insatiable desire for novelty. It is no coincidence that both Hollywood and the video gaming industry operate under what is called the studio model, whereby a deep-pocketed company provides backing and distribution to a portfolio of movies or games, uncertain which one will become the next megahit. This ...more
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Hooked: How to Build Habit-Forming Products
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