Tuesday, August 27, 2013

Steve Ballmer and the Art of Managing a Monopoly : The New Yorker

Also see Finite and Infinite Games
"In this setup, there are two very different types of players, each with very different incentives: those entering the lotteries, and those who have already won one. The job of the lottery entrants, such as Zuckerberg when he launched Facebook, in 2004, and Karp when he launched Tumblr, in 2007, is to come up with innovative and exciting products that the judges—investors and the public—are likely to award first prize. (The contest is a lottery because there are often many competing products, with little to distinguish them save that one has first-mover advantage.) The job of the lottery winners is to make the most of their monopoly franchise, building it out and making it last as long as possible."
Steve Ballmer and the Art of Managing a Monopoly : The New Yorker

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