It has what economists call increasing returns to scale and huge barriers to entry.
In the second, the increasing returns to venture capital makes it easier for start-ups to find funding.
So being a first mover in something that has increasing returns to scale and is about information--those are very cool things.
This principle of diversification works in increasing returns and in reducing risk.
We learned that few businesses truly fit into an "increasing returns" model.
So long as the feedback is positive (an important qualification), the result is a virtuous cycle of increasing returns for the idea.
The dynamics are a bit involved but in short export industries will tend to be folks who gain from increasing returns to scale.
By gaining exposure to the health care sector, investors can further diversify their portfolio (reducing risk) while also maximizing overall dividend performance (increasing returns).
Second, scientific advance tends to have increasing returns to scale: adding more scientists to a community does not diminish individual marginal productivity but tends to increase it.
Consultants fill up white boards with terms like "network effects" and "increasing returns" as if these dynamics were a sure bet for the next 20 years, like Moore's Law.
And, if there are increasing returns then the agglomeration of lots of developers into this world will mean lower cost products and an even stronger advantage to enter ingapp development.
Airships demonstrate a law of increasing returns: doubling the length increases the surface area (and hence weight) by a factor of four while the volume (and hence lifting capacity) goes up by a factor of eight.
Third, we believe in economics of increasing returns for mobile ecosystems and judge rather unlikely that Windows can gain critical mass against Android and iOS. Fourth, we have seen evidences of lack of traction for the Windows operating system over the last 12 months and challenge the idea that the Nokia brand can make a meaningful difference today.
Creating more stable returns and preserving capital is critical to increasing compound returns over time since the lower the portfolio loss in a declining market, the lower the recovery needed to restore lost value.
My own suspicion is that the increasing-returns mania of the mid-1990s is what drove this fallacy.
Without a doubt, however, the increasing-returns fad spilled into the entrepreneurial population at large around 1995 and became the rage.
Secular drivers such as environmental regulations and increasing product returns for companies entering the e-commerce segment will also support this growth.
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Moreover, it appears that social networking is a classic increasing-returns business, and Facebook was good or lucky enough to leverage it better than anyone else.
Maybe Intel rode the increasing-returns wave between 1992 and 2000.
Does it have an increasing-returns-to-scale type dynamic involved?
"At a time of falling stock market returns and increasing life expectancy, companies are unfortunately facing little choice but to reluctantly close their final salary schemes, " said the EEF's deputy director of employment policy David Yeandle.
Potential risk is increasing related to distribution and while returns could ultimately be solid, uncertainty could weigh on the shares.
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Among younger men, the returns to English are increasing in educational attainment.
He also points to the increasing trend of free shipping and returns from online retailers as a factor in the rise in his--and all online--sales.
Barrick reiterated its business focus on generating returns and free cash flows rather than increasing production.
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In the financial crisis, defendants were less inclined to settle and dragged out negotiations, increasing the risk of the portfolio and driving down returns.
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Whilst there are many arguments that hold true - one being that businesses suffer from the increasing burden of completing government paper work and tax returns - I personally think that significantly more should be done to bring business, entrepreneurship and innovation into the educational process.
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In my view, additional enforcement efforts above this point are likely to be subject to rapidly diminishing returns, both in reducing the rate of piracy and increasing copyright holder revenues.
Unless companies can increase the returns on their pension funds, they will be at an increasing cost disadvantage compared with foreign rivals.
These grand-scale premonitions are largely based on Kurzweil's law of accelerating returns, which states that the development of technology has been increasing exponentially since the beginning of time.
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