#EpiPen has two rival suppliers
28 Aug 2016 Leave a comment
in health economics, industrial organisation, politics - USA Tags: intellectual property rights, monopoly and competition, patents and copyrights
Creative destruction in print media revenue and employment
26 Aug 2016 Leave a comment
in economic history, economics of media and culture, industrial organisation, survivor principle
.@NZGreens do not understand business: minimum wage for contractors version
25 Aug 2016 Leave a comment
in applied price theory, applied welfare economics, economics of regulation, industrial organisation, labour economics, politics - New Zealand, poverty and inequality, survivor principle Tags: expressive voting, market process, New Zealand Greens, price signals, rational irrationality, The meaning of competition
The Greens are most upset that a Labour party private members bill to specify a minimum wage for contractors was voted down by one vote in parliament yesterday.
If you earn than the minimum wage as a contractor, that is a signal wrapped in an incentive. Your poor hourly earnings is a signal to you that maybe you should get out of that contracting business and go back to being an employee where you will be paid at least the minimum wage.
Many small businesses make no profits at all in the first year or so as they build the business. The founders of the business get by on savings, which they anticipated when they drew up their business plan. No one expects a business to make an immediate profit or always be profitable.
Contractors are entrepreneurs chancing their arm. They need crisp signals about whether they are succeeding, failing or could succeed if they try harder or do something different. A minimum wage for contractors masks those important market signals of success and failure.
If your dream of owning your own business is not even paying the minimum wage, maybe it is time to get out of the contracting business.
Creative destruction in New Zealand advertising market shares
23 Aug 2016 Leave a comment
in economics of media and culture, industrial organisation
Source: KPMG valuation report on Television New Zealand Limited, 18 December 2013 via Valuation Reports for SOEs -2013 — The Treasury – New Zealand.
Creative destruction in print media
22 Aug 2016 Leave a comment
in economics of media and culture, industrial organisation, survivor principle Tags: creative destruction, legacy media
Alchian and Allen on the superfluousness of economic principles to civilisation
13 Aug 2016 Leave a comment
in applied price theory, Armen Alchian, comparative institutional analysis, constitutional political economy, development economics, economic history, industrial organisation, international economics Tags: industrial revolution, The Great Enrichment, The Great Escape, The Great Fact
Why politicians and bureaucrats can never pick winners?
12 Aug 2016 Leave a comment
in economics of bureaucracy, entrepreneurship, industrial organisation, politics - New Zealand
If politicians and bureaucrats were any good at picking winners, they will be on a fabulously well paid package at a hedge fund.
Culture of Gowth: Origins of the Modern Economy
08 Aug 2016 Leave a comment
in behavioural economics, comparative institutional analysis, constitutional political economy, development economics, economic history, growth disasters, growth miracles, industrial organisation, law and economics, Public Choice Tags: industrial revolution, The Great Fact
Anti-competitive mergers make little sense to me
04 Aug 2016 Leave a comment
in applied price theory, industrial organisation, survivor principle Tags: competition and monopoly, competition law, mergers and takeovers
There are two main arguments against mergers and acquisitions. The first of these is that they are paper shuffling with little in the way of cost advantages. The second is they allow the combined firm to raise its prices because it faces less competition.
I find these arguments to be in direct contradiction. Anti-competitive mergers must be high risk venture if there is little in the way of cost savings. Two previously efficient firm sizes are disturbed permanently in the hope of some ability to raise prices in the future without provoking too much new entry or expansion from the competitive fringe.
It is far better just to keep on colluding or just compete rather than risk permanently damaging the efficient operation of both firms.
West Wing – ‘You reversed my position.’
22 Jul 2016 Leave a comment
in economics, economics of crime, industrial organisation, law and economics, survivor principle, television Tags: West Wing
Yes Prime Minister on a minister of manufacturing @jamespeshaw @julieannegenter
21 Jul 2016 Leave a comment
in comparative institutional analysis, economics, economics of bureaucracy, economics of media and culture, industrial organisation, international economics, politics - New Zealand, Public Choice, rentseeking, survivor principle, television Tags: corporate welfare, industry policy, New Zealand Greens, picking losers, picking winners, Yes Prime Minister
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