David Hornick just wrote a post that turns the Long Tail into a new economy: Chris Anderson Strikes Again: The Economy of Abundance. several of the smartest VCs I am reading (actually 4 out of 9 VCs) are wondering directly or indirectly about abundance.
Last week, I wrote a post, after reading Equity Quicker, about a "Google size problem" that is not yet dealt with. I splited my argumentation in 4 parts. The first one was about Content and was, without using the term, describing an Economy of abundance.
"Content: Long Tail + Dematerialization = Pandora Box of Content = Content like water" = Abundance
Ross Mayfield wrote a sequel using the dichotomy : Scarcity/Abundance and quotes a post from Jerry Michalski's talking with Sirf (from technorati) saying that scarcity is the only way to create value. And digging my abundance delicious tag i found these two lines from aVC, that should settle this debate:
"In the physical world scarcity is what leads to value.
In the digital world abundance is what leads to value."
Nevertheless I disagree with R.Mayfield on one point: "scarcity of attention is false", but maybe it's because he speaks about production quoting Abundance economics [Flemming Funch,1994] and not about consumption.
"Across consumer markets, attention is becoming the scarcest - and so most strategically vital - resource in the value chain. Attention scarcity is fundamentally reshaping the economics of most industries it touches; beginning with the media industry."
The attention Economy (it's the first post I tagged using the abundance term, because to discover a new problem/need one needs to nail a new environement).
So now let's ride the vibe.... D.Hornick said "Like the Long Tail before it, I suspect that I will be seeing the
Economy of Abundance permeate the presentations that I see in the
coming months and year." We are happy that these ideas permeate our pitch some time ago (and we considered at that time that we were laging the P2P environment) when we first drafted it because we really believe on the attention/scarcity problem/need (it's the other face of the abudance coin).
If you want to follow that track let me offer you a delicious kind of meal :
- Venture with Wit. With the four points and some examples and quotes.
- The first post from longTAil on the subject (at least I think) and it's in March 2005 !!
- Attention Network by Apophenia
- The first two post of david Hornick back in 12/05: Where's the money in the Long Tail? & Social Networks 3.0 (These two posts are the reason why it went directly in my RSS reader.)
- Disruptive Thoughts on Crowds aren't wise (it's indirectly related to the topics but that guy kicks ass with disruption and quotes condorcet ;-))
- Attention and entrepreunership from Avc / Grinda and Hypomanics
- I have a lot more in the pipe but I need to turn my starred RSS from Google reader to delicous.... and it will take time.