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Optic Adventure In that first fund we also learned the important lesson that one must never fall in love with technology.
The Masters of Private Equity and Venture Capital
Robert Finkel
An example of this would be smartphone apps. Another smartphone OS would be hard to offer at this point because it would start out with a dearth of apps. This would make it very unattractive. Developers of apps would of course not be incented to spend their scarce resources since the market would be small.
Then it eventually goes back down to zero again: At some point (rarely seen in practice), when an asset is sufficiently attractive, holding even a small amount of it will make you fabulously rich in the good outcome—so there's no reason to hold a ton of it and risk the bad outcome on a large fraction of wealth. This effect takes the optimal allocation back down again toward zero, giving us the hump shape.
The Missing Billionaires
Victor Haghani and James White
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