Oligarchy Anti-Pattern
From Zanecorpwiki
WIP
The oligarchy anti-pattern is by far the typical and dominant form of business.[notes 1]
Contents |
Coopetition
Oligarchies are more stable than monopolies because they do provide enough competition that the field does not stagnate entirely. One of the major problem of monopolies is stagnation. Even if monopolies try to innovate, their monopoly position imposes cultural, psychological, and economic blinders that limits the company's ability to do so.[notes 2]
Oligarchies suppress do a much better job of exploiting non-disruptive changes. The friendly competition among the oligarchs keeps the level of advancement ticking along at a predictable pace which keeps the public happy.
The advances, however, are rarely innovative and never intentionally disruptive. In other words, they are move in a predictable direction, which keeps the oligarchs happy.
The Five Percenters
The oligarchy as a whole serves two purposes. First, all mainstream innovation is funneled into the existing power structure. There is some competition among members as to who gets what, and this is beneficial and encourages investment in mainstream advance.
The pharmaceuticals are explicitly organized along these lines. Big pharma does essentially no research or development, they just pay off those that have and buy up drugs as they pass early trials and become interesting. The function of the oligarchs has nothing at to do with pharmaceuticals, they're just the incentive makers.
In most industries, the oligarchs are active in the business itself, but the implicit guarantee is always the same: get big enough and we'll buy you out for a handsome amount.[notes 3]
The other side of the coin is the problem with oligarchs: they actively interfere with disruption at the edges.
The Nature of Innovation
The good news is that true innovation is almost always only recognized after the fact. As a consequence, it can often "slip through" despite the considerable forces arrayed to prevent just that.
Notes
- ↑ I speak in terms of dollars here, meaning that the most dollars transacted flow through on oligarchy. TODO: I believe this is a true statement, but need some research.
- ↑ Microsoft 1990-2000 (post-early Apple and pre-Linux) is a good example of this? TODO: link to expound: Monopoly Stagnation
- ↑ TODO: something for more thought: the outsized buy outs that get publicized, I wonder if these are actually the "mistakes" they are portrayed as or if perhaps such whopper pay days are beneficial in energizing and focusing attention on the mainstream. I.e., it may be part of the strategy to cut off disruptive innovation by focusing attention at the center.
