To be integrated

Economic profits are different from accounting profits. I think they’re where a supplier is able to charge a higher price than the efficient/equilibrium market price.

  • Looking into it, it seems to be accounting profit less opportunity costs.
    • How to actually use this idea, though?
      • I forget, why is the marginal revenue curve steeper then the demand curve for noncompetitive markets?
      • Is it wrong for a firm to be in favor of the market and eroding economic profit by increased competition? It seems like it’d be beneficial for society in general (marginal net benefit social).

Marginal net social benefits - the deep end of economics

#entrep Guide related to building marketplaces:

“Create more than you capture” is similar to Gary V’s Jab Jab Jab right hook.

  • Deferred sale, deferred capture. Gifts that sow seeds of repayment, goodwill, compensation or future assistance.
  • In college I was interested in gifting economies, thinking mostly about the economics of open source like through Liberapay. An economics professor who I talked with about this (Dube) brought up the idea of a deferred sale, where you make a sale well after providing the/some value.

Time horizon, time preferences

Time discounting - term for this

  • hyperbolic discounting

Market definition

Or the bounds of a market

Short-run and long-run are different

Time constrained, often(?) regionally constrained

What affects market growth - people joining the market or leaving it Driven by relative prices (relative to adjacent markets for things) if preferences truly don’t change (which would also drive changes in demand (and likely supply))


Related to My Notes and Notetaking

Inventory costs associated with letting notes, especially in a disordered manner — uncertainty about value of each object or location of each object (search and retrieval costs)

  • inventory costs in economics

Market life cycle

If you’re developing a new market, in the way of customer development, you might start off doing things that are pro-market (facilitation). But once the market is developed enough to sustain you, you might be tempted to enclose the market, raising barriers to other entrants. At this point you’d likely try to erase what you might’ve done or said in the beginning, from your Market development steps, as they contradict what you are trying to do, then. You’ve become anti-market. (Shift in firm strategy depending on the life stage of the/a market they’re trying to succeed within.)