Re:FAA Issues Emergency Order of Revocation Against TapJets
by dredmorbius on Friday February 02, 2018 @10:44PM
(#16296038)
There's also survivor bias.
If 10 firms start out, and 1 survives to profitability, that single firm's P/L will show gains, but the industry net won't.
That's not true profit, but a probabilistic artefact of essentially winning a sequence of bets.
There may also be gains possible if the survivor can increase scale of operations and/or start mitigating risks that smaller players cannot. This is another path to monopoly advantage that is based, again, on effectively winning early chance-based trials, and then ratcheting in an ever-larger risk advantage as compared to smaller players.
If 10 firms start out, and 1 survives to profitability, that single firm's P/L will show gains, but the industry net won't.
That's not true profit, but a probabilistic artefact of essentially winning a sequence of bets.
There may also be gains possible if the survivor can increase scale of operations and/or start mitigating risks that smaller players cannot. This is another path to monopoly advantage that is based, again, on effectively winning early chance-based trials, and then ratcheting in an ever-larger risk advantage as compared to smaller players.