HomeFrameworks › Financial & Economic
// category

Financial & Economic

Frameworks for understanding how money and value actually work in a business. These aren't accounting tools — they're thinking models for understanding why some business models print money and others slowly drain it, and how to build something with genuine economic logic underneath.

Unit Economics Venture capital / startup finance, widely used from 1990s Analyse direct revenues and costs per single unit to determine whether each sale is profitable before you scale — the foundational check every digital product business needs. Network Effects Theodore Vail (observed 1908); formalised by Robert Metcalfe (Metcalfe's Law, 1980) A product or service becomes more valuable as more people use it — the mechanism behind dominant platforms and why community compounds where audience doesn't. Opportunity Cost Frédéric Bastiat (proto-concept, 1850); formalised in neoclassical economics, late 19th century The value of the best alternative forgone in any decision — why "free" tools and DIY approaches often cost far more than their price tag suggests. Platform Business Model Andrei Hagiu & Julian Wright (academic formalisation); internet era, 1990s–2000s Creates value by facilitating interactions between two or more distinct user groups — and why every KDP and Etsy seller must understand the difference between owning a platform and living on one.
← Behavioral & Psychology Futures & Foresight →