of course, this is more a question about equilibria than literal transactions. suppose you capture most of the value and then pay it back out to users as a dividend: the users now have more money with which they could pay a middleman, and a middleman that could have extracted some amount of value originally can still extract that amount of value in this new situation.
we can model this as a game of ultimatum between the original value creator and the middlemen. if the participation of the OVC and middleman are both necessary, the OVC can bargain for half the value in an iterated game / as FDT agents. however, we usually think of the key differentiating factor between the OVC and middlemen as the middlemen being more replaceable, so the OVC should be able to bargain for a lot more. (see also: commoditizing your complement)
so to ensure that the end users get most of the value, you need to either ensure that all middleman roles are commoditized, or precommit to only provide value in situations where the end user can actually capture most of the value
The equilibrium comprises literal transactions, right? You should be able to find MANY representative specific examples to analyze, which would help determine whether your model of value is useful in these cases.
My suspicion is that you’re trying to model “value” as something that’s intrinsic, not something which a relation between individuals, which means you are failing to see that the packaged/paid/delivered good is actually distinct and non-fungible with the raw/free/open good, for the customers who choose that route.
Note that in the case of open-source software, it’s NOT a game of ultimatum, because both channels exist simultaneously and neither has the option to deny the other. A given consumer paying for one does not prevent some other customer (or even the same customer in parallel) using the direct free version.
of course, this is more a question about equilibria than literal transactions. suppose you capture most of the value and then pay it back out to users as a dividend: the users now have more money with which they could pay a middleman, and a middleman that could have extracted some amount of value originally can still extract that amount of value in this new situation.
we can model this as a game of ultimatum between the original value creator and the middlemen. if the participation of the OVC and middleman are both necessary, the OVC can bargain for half the value in an iterated game / as FDT agents. however, we usually think of the key differentiating factor between the OVC and middlemen as the middlemen being more replaceable, so the OVC should be able to bargain for a lot more. (see also: commoditizing your complement)
so to ensure that the end users get most of the value, you need to either ensure that all middleman roles are commoditized, or precommit to only provide value in situations where the end user can actually capture most of the value
The equilibrium comprises literal transactions, right? You should be able to find MANY representative specific examples to analyze, which would help determine whether your model of value is useful in these cases.
My suspicion is that you’re trying to model “value” as something that’s intrinsic, not something which a relation between individuals, which means you are failing to see that the packaged/paid/delivered good is actually distinct and non-fungible with the raw/free/open good, for the customers who choose that route.
Note that in the case of open-source software, it’s NOT a game of ultimatum, because both channels exist simultaneously and neither has the option to deny the other. A given consumer paying for one does not prevent some other customer (or even the same customer in parallel) using the direct free version.
I make no claim to fungibility or lack of value created by middlemen.