1. New company comes in with VC funding<p>2. Uses funding to operate at a loss and undercut and outperform existing players<p>3. Growth slows because there are only a couple billion internet users out there. Raises prices or decreases value to try to find a profit.<p>4. See step 1<p>It&#x27;s hard to see this as an efficient method for finding the best product in a free market.