Zero To One
peter thiel has lots of hot takes in his book aimed at those interested in startups and what they fundamentally are. let’s jump in. the first hot take? monopolies are better for society than highly competitive markets. according to thiel, the classical economics version of a highly competitive market is one populated by companies all producing undifferentiated versions of the same product, barely making profits. these companies can’t afford to innovate for the future since cutting into their bottom line will force them to lose due to their micro-margins. in contrast, monopolies have the luxury of having the ability to invest in long-term growth for the future.
he argues that monopolies in the tech age have arisen due to companies providing a product that remains an order of magnitude better than any remaining competitor. for instance, google with search or facebook with online social media. these companies have also provided extensive research and development into the production of potential future wealth,