Posts with keyword: economies+of+scale

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Connected Platforms for Connected Applications

Mon Nov 3 14:25:00 2008

Ian Davis, the CTO of Talis is speaking about connected platforms. He starts with a lesson in economics. In the pre-industrial era, most goods were produced by individuals or small groups working together. consequently, most trading was local. Trading to a large market required a very large company capable of vertically integrating all its functions. The East India company is an example: ships, docks, towns, armies, and even currencies were all done by that one company. Transactional costs for a given market size were usually much larger than the associated value in the pre-industrial era. Transaction costs fell with
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