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One of the most interesting seldom mentioned concepts in business is the barrier to exit. You decide to buy a truck and start a trucking company. Oh shit, it's harder to make money than you anticipated. If you don't make it work, you're losing your house.
So you "make it work" and eek out small profits, ruining the profitability of the entire industry. You launch some product and it fails. So you discount it, hurting not only your bottom line but those who compete with you indirectly. Barriers to exit. Few in software!
Seems like you are equating owner's capital as a barrier to exit. In software, it's harder to exit because your capital is a sunk cost. Or are you saying because there is no sunk cost in non-software owners spoil the game in pursuit of an exit?
I'm not. If you look at my truck example, it's different. If I blow $100k on inventory vs. $100k on software development there is no closeout sale of hte software. I just close. That doesn't hurt my competition. Closeout of inventory does.
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