Seonglae ChoCommoditization
The process by which a product that has economic value and differentiable attributes eventually becomes viewed by the market or consumers as a simple, interchangeable commodity.
The market’s shift from differentiated price competition to undifferentiated price competition, moving from monopolistic competition toward perfect competition.
The process by which a technical, complex system is abstracted into a simple structure, lowering barriers to entry and leading to widespread adoption by consumers.
The era in which companies profit by deliberately creating friction, consuming consumers’ time, is being undermined by AI as a “time-equalizing tool.”
LLM training is performed in a time-invariant way and does not “perceive” time, which is both a limitation and, at the same time, makes it a useful tool for breaking down existing product/market structures. An iid-based trained LLM is, fundamentally, a tool for discovering time-invariant structures in language or reasoning.
The Last Gasps of the Rent Seeking Class
Over the past fifty years, the U.S. economy built a giant rent-extraction layer on top of human limitations: things take time, patience runs out, brand familiarity substitutes for diligence, and most people are willing to accept a bad price to avoid more clicks. Trillions of dollars of enterprise value depended on those constraints persisting. – Citrini Research
https://geohot.github.io/blog/jekyll/update/2026/02/26/the-last-gasps-of-the-rent-seeking-class.html
Commoditization - Wikipedia
In business literature, commoditization is defined as the process by which goods that have economic value and are distinguishable in terms of attributes ( uniqueness or brand) end up becoming simple commodities in the eyes of the market or consumers. It is the movement of a market from differentiated to undifferentiated price competition and from monopolistic competition to perfect competition.
https://en.wikipedia.org/wiki/Commoditization