This quote highlights the ongoing trend of transaction costs decreasing as computer technology advances. It suggests that with more powerful computers, it becomes easier and less expensive to conduct transactions across various platforms, whether online shopping or other digital services. This reduction in expenses benefits both businesses involved in facilitating these transactions and consumers who find it cheaper and simpler to make purchases.
Beyond its surface meaning, the quote also points to a broader economic principle: as transaction costs decrease, new opportunities emerge for creating and selling products that were previously impractical due to high overheads or logistical challenges. This reduction not only simplifies everyday transactions but also opens up possibilities for innovation and entrepreneurship in the digital space. It suggests that lower barriers to entry can lead to an explosion of new businesses and services, thereby enriching consumer choice and economic activity overall.
The quote is attributed to Nathan Myhrvold, a prominent figure in technology and science. As the former Chief Technology Officer at Microsoft Corporation, Myhrvold has been influential in shaping the technological landscape through his role in software development and innovation management. His insights often focus on the intersection of technology and economics, making him well-suited to comment on trends like declining transaction costs and their impact on business and consumer behavior.
