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Why Some Digital Companies Should Delay Profitability for as Long as They Can

Harvard Business Review

When most of the great companies of the industrial era were founded, even the most brilliant economists believed deeply in the law of diminishing marginal returns. The law of diminishing marginal returns held firm throughout the industrial era. He speculated that some industries actually demonstrated increasing returns.

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Case Study: Should a Hotelier Invest in a New Kind of Online Travel Agency?

Harvard Business Review

The room was full of other industry executives who’d attended the presentation, and Lotta and Gerard could see Dan making the rounds, shaking hands and handing out cards. ” Negative NPV. “You can see that if you go three years out, the NPV is still negative on our investment. trillion travel industry.