Market Power

Musings by an academic economist on the power of markets and the power over markets.

Wednesday, March 30, 2005

Remember AOL?

It looks like Blogger is running into problems similar to what AOL ran into several years ago. The marginal cost of posting on blogger is very small, so rational people will blog up until their marginal benefits equal zero. Collectively, since the bloggers aren't bearing the costs imposed on the servers, this causes overuse and causes the system to crash.

I don't know for sure, but that's what seems to be going on.