Posts Tagged ‘competition’

Regulating taxis

October 11, 2015

In Global Economy, our discussion of the pros and cons of regulation goes like this:

  • There’s often a legitimate rationale for regulation (eg, safety).
  • Real-world regulation often goes well beyond the rationale, typically because incumbents use it to protect themselves from competition (eg, Tesla, chickens, braiding hair).

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Competition for Amazon

June 5, 2014

Going back to Adam Smith, economists have been fans of competition. The more competition the better, with the producer giving the best combination of price, quality, and service getting your business. Think about your worst customer experience. There’s a good chance it was with a monopoly, either private (cable?) or public (DMV?).

So where does that leaves us with Amazon? We’ve heard that Amazon has too much market power in the book business. If you have the same concern, you can buy books from one of its competitors — see, for example, the links here. Would that be a good thing?  Read the rest of this entry »

Amazon v. Hachette, continued

May 31, 2014

From today’s Times: “Amazon’s competitors are trying to seize the advantage [from Amazon’s disagreement with book publisher Hachette]. Walmart.com is promoting Hachette titles at 40 percent off, and said Friday that its online book sales had jumped as a result.” Yup, that’s the way competition works, great to see it in action. Other competitors are surely doing the same.  Read the rest of this entry »

Business in the real world: Comcast & Netflix

May 24, 2014

Another example: Comcast is said to have slowed down streaming from Netflix, perhaps as prelude to an agreement in which Netflix paid for better service. Hard-nosed business practice — or something else?   Read the rest of this entry »

Amazon @ Stern

October 17, 2012

Here’s a novel approach to MBA recruiting:  a competition to develop real products (ideas wanted!) for a real firm (Amazon), where the winners are flown out to Seattle for job interviews. Brought to you by our friend and colleague, Glenn Okun.  More here.

Airlines and banks over the business cycle

November 28, 2011

One of the central areas where macro and microeconomics intersect is price behavior over the business cycle, especially in industries with market power. Are prices pro-cyclical (higher during booms) or counter-cyclical? Read the rest of this entry »