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Why were many Industrial Revolution innovators unrewarded despite high value creation (X)?
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Y (value capture) was often 0%, meaning innovators and scientists did not capture much of the value they created.
What are Google's advantages that contribute to its monopoly status?
Google benefits from network effects, proprietary technology, economies of scale, and strong branding.
Why is longevity important for monopoly businesses?
Most value comes from future cash flows, and durability over time provides a last mover advantage.
What are the pros and cons of perfect competition according to Thiel?
Pros: Easy to model, efficient in static situations, politically favored. Cons: Poorer profitability, less stable.
How does Thiel view the rationalizations in fields like science and software?
Science often overlooks non-economic gains for charitable motives, while software captures a high percentage of value but is not necessarily the most valuable.
What advantages does software have in building monopolies?
Software offers high economies of scale and fast adoption, leading to rapid accumulation of cash.
How do non-monopolist and monopolist companies lie about their market status?
Non-monopolists claim the market is super small to attract investment. Monopolists claim the market is large and competitive to avoid regulation.
What psychological challenge does Thiel associate with competition?
Humans have a deep attraction to competition due to their imitative nature, making it difficult to avoid crowded paths and seek unique opportunities.
How can monopolies be identified according to Thiel?
Look at the real market instead of believing market narratives.
What advice does Thiel give about competition?
Avoid crowded paths and seek unique opportunities, as competition can deter from answering bigger questions of value.
What is Peter Thiel's key thesis about monopoly vs. competition?
Aim for monopoly, avoid competition; competition is for losers.
What are key characteristics of monopoly businesses according to Thiel?
Proprietary technology that is an order of magnitude better, network effects, economies of scale, and strong branding.
How does the profitability of the airline industry compare with that of Google?
The airline industry has high revenue but low profit margins, while Google has lower revenue but higher profit margins.
How do companies like Ford, Tesla, and SpaceX achieve success according to Thiel?
They succeed through complex coordination and vertically integrated monopolies.
What strategy does Thiel suggest for building a monopoly?
Start small by targeting small markets to gain dominance, then expand over time while avoiding large, competitive markets.
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