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This is very simple to understand: in the long run, price tends to marginal cost of production. Open source represents the logical endpoint: since marginal cost of software is ~0, the endpoint is something with price ~0. SaaS is a response, but open source is already chipping away at the low end. As for the general thought about experts, consider web browsers. Advancing the state of the art is extremely expensive, ye…
> in the long run, price tends to marginal cost of production Ah but this principle applies to commodity markets, where prices rising above the marginal level would prompt an increase in production from competitors or new entrants to the market. Software is not a commodity though, nobody other than Adobe makes Photoshop, we can’t increase production of Photoshop. People can create competing products, of course, but t…
It would have been interesting to see how things would have turned out had Microsoft been able to continue integrating the OS and web browser.
At this point I expect most users expect the OS to include a web browser and would consider it deficient otherwise. I'm not sure if it's even possible to replace Chrome with Firefox on ChromeOS.