> if they were to improve productivity of 10% of the economy by 10% and capture a third of that value for themselves, that would be more than enough

This is “if we get 1% of the market” logic.

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vanviegen 3 days ago | parent [-]

That type of logic is not inherently flawed, is it?

Of course, you must also make a convincing case for getting to that 1%.

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JumpCrisscross 3 days ago | parent [-]

> That type of logic is not inherently flawed, is it?

Inherently, no. In practice, it's riddled with biases deep enough [1] to make it an informal fallacy.

"The competition in a large market, such as CRM software, is very tough," and "there are power laws which mean that you have to rank surprisingly high to get 1% of a market" [2]. Strategically, it ignores the necessity of establishing a beachhead in a small market, where "a small software company" has "a much better chance of getting a decent sized chunk."

[1] https://www.nature.com/articles/s41599-024-03403-9

[2] https://news.ycombinator.com/item?id=45804756

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