Aggregator is just a polite word for a peculiar form of monopoly.
- Aggregator is just a polite word for a peculiar form of monopoly.
- In the industry we don't call them monopolies, because that's impolite and we want to pretend like they're something different.
- Like all monopolies, they get to a point where they short-circuit competition.
- They then become something that doesn't really have to compete, and the amount of society surplus created declines.
- Aggregators are better than most monopolies because network effects mean the products are better than competitors'.
- But that's more due to the inherent network effect than the value created by the aggregator.
- But they have the same stagnation and lack of competition as any monopoly.
- Stagnation, heat death.
- Where Ben Thompson and I disagree is he thinks aggregators are great and I think they're bad.