Tuesday, February 10, 2004

You Can't Plan This Kind of Thing

This evening, I was explaining to a class of MBA students how above-normal profit in an industry tends to attract entry into the industry (unless there are significant barriers to entry). I asked the students for examples of industries that are currently making above-normal profits, and one student volunteered the pornography industry. “Yes,” I said, “and I imagine there’s a great deal of entry in porn!”

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