In Capitalism Without Capital, Arnold Kling explains that “[t]he most fundamental fact about the Internet is that it facilitates capitalism without capital”:
As observers from John Kenneth Galbraith to Amar Bhide have pointed out, corporate bureaucracy emerges to regulate risk-taking in an environment in which new projects are very expensive. Think of a new airplane or a new fabrication plant for computer chips.When a new project can be hatched in a basement on a small budget, fast failure is more efficient than organized planning.
Fast failure is more efficient than organized planning.