A note from Daniel

What is more common is oligopolies—markets with only a small number of competitors and limited room for new entrants. Markets tend to favor unequal distribution of market share and profits, with a few leaders emerging in any industry—what's known as a "winner-takes-all market." Winner-takes-all markets are hard to disrupt, and they suppress the entry of new players by locking in market share for leading players. When we say a market is "winner-takes-all," what we mean is that a single company receives most available profits. A few others have at best a modest share. The rest fight over a minuscule remnant and tend not to survive long.

Daniel The Great Mental Models, Volume 4, page 139 · December 23, 2024 Save to shelf
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