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Competition keeps incentives between parties on a marketplace aligned

Competition keeps incentives between parties on a marketplace aligned

Feb 27, 20261 min read

  • Example from social networks. The ability to choose an interface allows you to decide which experiences you make. In essence you get a a “credible exit path”. One, where you walk away with what matters most to you. By keeping the power to do so, you force the other party to stay honest.
    • For a deeply technical discussion of this, I recommend this blog post on bluesky: https://dustycloud.org/blog/how-decentralized-is-bluesky/

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  • The more I care about something, the less I tolerate the possibility of changing incentives of someone with power over the things supply chain

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