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Oh, that's true. Oftentimes these are ways of shifting costs from people inside the new market to people in the old market. This actually accelerates adoption of new technology, because not only do you reap the benefits, but you offload the externalities onto people who haven't switched yet, incentivizing them to switch.

I can think of a lot of examples, eg. Internet media destroyed the monopoly of old media, which made it uneconomical to do serious investigative journalism, which further reduced the quality of old-line media, which accelerated the switch to Internet media. Private/magnet/charter schools brain-drain the best students out of public schools, which decreases the quality of instruction, which means that you need to start looking at private/magnet/charter schools if you want your kid to have a decent education. Automobiles incentivized the creation of road networks and parking lots, which took up so much space that you can no longer walk anywhere, which requires that you get a car.

Usually it results in the total destruction of the old industry, and then the new industry develops some taxation/regulation scheme to cover common goods within the new technology regime.



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