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Read Write Own: A new era

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The Cycle of Incentive Shifts in Network Effects

Network effects often follow a cycle where companies start by offering valuable services, but over time, the incentive shifts towards extracting money from the network rather than attracting complements. This cycle has repeated itself multiple times, where people fall for the trap of prioritizing extraction over growth. This pattern is likely to occur again, especially with emerging technologies like AI, leading to another generation falling into the same cycle.

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