A dismal scientist I'm not

Keith Dawson (dawson@world.std.com)
Tue, 13 Jan 1998 23:20:19 -0500

Folks --
I missed the fact that Dan copied you on his note to me,
"Krugman on Arthur's increasing returns." I sent the
following to Dan Kohn <dan@teledesic.com>, Kevin Postlewaite
<kpost@ssc.upenn.edu>, and Carl Edman <cedman@lynx.ps.uci.edu>.

- - - - -

You all wrote within 15 minutes of each other pointing out the
Krugman article -- looks like it just appeared on Slate. Well,
Cassidy took me in, too. I'll post an emendatation on the TBTF


>you seemed to suggest that what is referred to generally as
>network externalities, Arthur called increasing returns to
>scale. This is extremely unlikely.

Keep in mind that everything I know about network externalities
(and Brian Arthur) I read in the New Yorker. Cassidy used the
term "increasing returns," not "increasing returns to scale."

Thanks for keeping me honest, guys, and I doubt I'll be venturing
into the dismal science again real soon...

Keith Dawson dawson@world.std.com
Layer of ash separates morning and evening milk.