Can you invest in a trend?
14 Dec 2014 Leave a comment
in entrepreneurship, financial economics, industrial organisation, survivor principle Tags: creative destruction, efficient market hypothesis, market selection, survivor principle, The meaning of competition
Ronald Coase on monopoly as the default explanation for perplexing business practices
11 Dec 2014 Leave a comment
Creative destruction alert: whatever happened to the Microsoft monopoly?
09 Dec 2014 Leave a comment
Creative destruction alert: Google and the collapse of US newspaper advertising revenues
08 Dec 2014 Leave a comment
The Attack on Concentration: Yale Brozen (1979)
06 Dec 2014 Leave a comment
in applied price theory, applied welfare economics, industrial organisation, survivor principle Tags: anti-trust law, competition law, creative destruction, The meaning of competition
There is a distinction between controlling the supply of a product and producing or selling most of the supply of a product.
“Dominant” producers who sell a major portion of a product’s supply usually have no control over the supply. They have no power to set any lower level of industry output and a higher price than that which would prevail in a market with many suppliers and no dominant firm.
Usually, a dominant producer is the most efficient firm in the industry. Its large output is the result of its efficiency in supplying the market. The market price is as low as it would be with many producers frequently lower.
Any attempt by a dominant firm to restrict its own supply and increase price after reaching a “dominant” position simply results in the expansion of output by other firms, the entry of additional firms, and loss of its dominance. A dominant firm can keep its dominance only by behaving competitively.
The fact that there is a dominant firm, or small group of firms, in an industry is evidence of competitive behavior not of monopolization.
via The Attack on Concentration: Newsroom: The Independent Institute.
Monopoly or superior efficiency – Google and all that
05 Dec 2014 Leave a comment
https://twitter.com/EconBizFin/status/539937864234958851
HT: Jeremy Thorpe
Milton Friedman on Competition in Education
30 Nov 2014 Leave a comment
in economics of education, liberalism, Milton Friedman Tags: Milton Friedman, School choice, The meaning of competition
Israel Kirzner on entrepreneurial alertness as the driving force of the market process
29 Nov 2014 Leave a comment
Utopia, you are standing in it! 
Recent Comments