My perspective is around ICT and telcos, and when they were just voice, copper, simple phones and complex switches, scale was everything. As the network dumbs and the edge smartens, and more alternative bearers arise, scale is less useful, indeed, with external standards, the co-ordinating function is now externalised to the benefit of all. Such is the nature of open infrastructure and standards.

Kevin’s identification of Wal-Mart as a beneficiary of such infrastructure seems a little unfair, its not exclusively available to them. Wal-Mart is still doing a simple thing, moving stuff around and selling it, which is possibly why their scale is beneficial.

In the telco space, the infrastructure is mostly theirs and they are permitted to exclude. Further the majority of services, are vertically integrated, and as the diversity of products expands, their costs outgrow their revenue as the services space, despite their best efforts, remains competitive (though their attempts to tax competitors have varying levels of success).

Regarding your comments on economics not being natural law, given its the study of the distribution of resources under scarcity, the natural condition of things heretofore, I think it is. But as some things become less scarce, its more about intentionality as you observe. Interesting to note how new concepts of scarcity (“QoS”) are being introduced to ensure margins remain, along with complexity.