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Anonymous Gibbon 6801Apr 22, 2026 4:07 pm
I agree with the sentiment that it flattens the pareto curve on the merchant/supply side - It becomes economically viable to target smaller cohorts. What about the distribution layer? Will the pareto distribution steepen here? Companies that aggregate more suppliers, more customers, and can refine the algorithms to actually push us to the future you're describing
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EricApr 22, 2026 4:52 pm
That's a great question. The primacy of the distribution layer as a consequence of the widespread adoption of AI tools is really the underlying thesis of this series, and it's the primary topic of the first episode. My sense is that, in the short term, you probably see *more* concentration just as a function of the cost required to develop those tools (and I think we're seeing that already). In the long term, though, I'd expect a similar flattening as 1) measurement improves, so firms can deploy budget on a wider variety of channels with confidence, and 2) these niche digital products themselves become advertising channels.
The Prosperous Society, Part 3: The Collapse of the Pareto Principle — Thread
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I agree with the sentiment that it flattens the pareto curve on the merchant/supply side - It becomes economically viable to target smaller cohorts. What about the distribution layer? Will the pareto distribution steepen here? Companies that aggregate more suppliers, more customers, and can refine the algorithms to actually push us to the future you're describing
That's a great question. The primacy of the distribution layer as a consequence of the widespread adoption of AI tools is really the underlying thesis of this series, and it's the primary topic of the first episode. My sense is that, in the short term, you probably see *more* concentration just as a function of the cost required to develop those tools (and I think we're seeing that already). In the long term, though, I'd expect a similar flattening as 1) measurement improves, so firms can deploy budget on a wider variety of channels with confidence, and 2) these niche digital products themselves become advertising channels.