Jun 2016

Uber, Disruptive Innovation And Regulated Markets

In Disrupting Law School, Michele Pistone, a law professor at Villanova University, and I argue that regulations—such as bar licensure and restrictions on the unauthorized practice of law—will not protect lawyers and law schools from disruption in the long term.

Lessons from regulated industries show that disruptors can topple the incumbents in these industries by first innovating outside of the reach of regulators; as the up-starts accumulate a sufficient number of customers, regulators cave ex post facto to the new reality in reaction to the innovator’s success.

In this piece, I present arguments for why Uber may be disruptive relative to taxis and six tests to judge whether something is on a disruptive trajectory relative to something else ahead of time.


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