I'm wondering if Chris's research for the Long Tail was able to quantify the effect of fixed regulatory costs, like the FCC, the FDA, and related bureaucracies which are burdensome for large manufacturers, but completely crushing for products at the end of the tail. If the only way to avoid regulation is to deliver intentionally defective products (the Japanese have a legend of a painter so great, his painted birds would spring to life and fly off the page, and to this day, Japanese painters show homage by leaving their paintings a few strokes incomplete) - In a sense, we, at the long tail are required to ship products, like Japanese painters, as incomplete, unworking, experimental etc. . . , or face say a one million dollar fine like the FCC levied on Behringer even though their audio equipment was in full compliance and tested in Europe.
I know first hand that some successful electronic houses will simply not produce finished consumer goods due to the burden and risk of regulation - but what I don't know is how many potential atom making products and their associated jobs are lost at the long end of the tail?
