1. One inventor or company comes up with a new idea and starts marketing early, primitive (and expensive) versions of the device or system.
2. Others jump into the business, and a feeding frenzy starts, as investors clamor to get in on "the next big thing." Most of these people lose their shirts. A few, later on in life, will regale you about how they had the opportunity to "get in on the ground floor" but chose the wrong company or wrong technology.
3. People file for Patents. Someone who has no real participation in the industry gets a broad Patent and sues everyone else. The other manufacturers band together to fight these Patent Trolls (yes, even in 1908, we had Patent Trolls).
4. The original inventor or company that came up with the idea hardly makes any money, goes bankrupt, or just leaves the business. The inventor usually sells off 95% of the business just to raise capital, and often he loses even what little he has left.
5. The business matures, and one player - often the last in the game - buys up the tattered remnants of the failing pioneers, and becomes dominant in the industry.
That turned out not to be true. In fact, the pattern of the dot com era pretty much followed that of the gaslight buggy era, the airplane era, and the computer era. A lot of people rushed into the business, few succeeded, and the pioneers were usually the first to be cast by the wayside.