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Competition

A Category Archive (40 entries)
"Capitalism" has become a fighting word in the battle between East and West and for men's minds everywhere; and, like all slogans, it means many things to many men. To some "capitalism" is a term of opprobrium, signifying the oppression... MORE

Amazon Prime's Contribution to Northern Canada

Business Economics
David Henderson
The consensus in Iqaluit seems to be that everyone with a credit card has an Amazon Prime membership. That's because people can often find groceries cheaper online than in local stores, despite government food subsidy programs. "Amazon Prime has done... MORE

Walter Block's Reductio ad Absurdum

Competition
David Henderson
Hey, Kevin Durant, quit being a ball hog; pass it to Lebron. I was thinking of writing a post about the absurdity of the recent EU antitrust case against Google, but Walter Block beat me to it with a reductio... MORE

Verizon vs. USPS

Competition
David Henderson
First, I erred. My own recent experience with Verizon, while personally heartening, is not good enough evidence on how large for-profit firms respond when a customer is treated badly. Two commenters said it particularly well. Commenter Tom Jackson writes:... MORE

Verizon Victory!

Competition
David Henderson
Last week I posted about my very upsetting experience with Verizon. A few days later, a regular reader of EconLog, who tells me he has learned a lot from reading EconLog, wrote me about the issue. He has a fairly... MORE

Will antitrust become a geopolitical matter?

Competition
Alberto Mingardi
The EU Commission has fined Google 2.4 billion euros for abusing its dominant position when it comes to its Google Shopping service. This is just one of the Google competition cases going on in Europe right now. In the... MORE

Ode to iPhone

Growth: Causal Factors
David Henderson
My former student, friend, and frequent co-author, Charley Hooper wrote the following on Facebook. He titled it "Ode to iPhone." I'm reproducing it with his permission. Now that the iPhone is turning 10, I want to tell a story of... MORE

Preach What You Practice

Competition
David Henderson
Using a borrowed credit card, the blonde Caroline Biden set up an unauthorized customer account at Bigelow Pharmacy on Sixth Avenue in Greenwich Village, and racked up the six-figure bill over the course of a year, according to a... MORE

"Now there's [sic] many, many options that people are replacing chains with," Victor Fernandez, the executive director of insights at the restaurant-industry tracker TDn2K, recently told Business Insider. Many of these options involve cooking at home. Grocery chains are increasingly... MORE

Why Predatory Pricing is Highly Unlikely

Business Economics
David Henderson
A widely held belief is that large firms with some market power can use their profits generated in particular markets to cut prices below costs in another market and drive out their competitors. Then, according to this belief, once... MORE

Two Cheers for Fox News Channel

Competition
David Henderson
Fox News Channel's decision to fire Bill O'Reilly caused me to reread a piece I wrote about Fox back in 2004. Were I to grade Fox, now, independent of O'Reilly, I would give them 1.5 cheers. An excerpt: Back to... MORE

Politics is Not Usually About Policy

Behavioral Economics and Rationality
David Henderson
Why you probably shouldn't pay attention to Milo Yiannopoulos. Co-blogger Bryan Caplan is a fan of his colleague Robin Hanson. One of Robin's favorite aphorisms is "Politics is not about policy." When I first heard it, I did what many... MORE

Trumpism in China

Competition
Scott Sumner
Trump's ideas are increasingly popular around the world. Here's an example from Shanghai, China, discussing China's version of Uber: Didi Chuxing, China's dominant car-sharing company, is gutting its fleet of drivers in Shanghai to comply with the city's new regulations... MORE

Stigler on Shaw on Marx

History of Economic Thought
David Henderson
George Bernard Shaw finds one of two crucial mistakes in Karl Marx; George Stigler finds the other. One of the late George Stigler's many contributions to economics, one that was not recognized by the Nobel Committee when it made its... MORE

AT&T, Time-Warner and the end of competition

Competition
Alberto Mingardi
The AT&T and Time-Warner merger is attracting considerable attention. The idea of "convergence" between telcos and content providers has been around for quite a while. Still, the idea of "convergence" needs to be tested via the market process. Integrating production... MORE

In 1992, I went to San Francisco's Candlestick Park to see the Giants play the Cincinnati Reds. To get into the baseball spirit, I wore my blue L.A. Dodgers helmet. (I root for both the Giants and Dodgers, but... MORE

Do we need more antitrust?

Competition
Alberto Mingardi
Do we need more antitrust enforcement? The Economist presents a number of interesting research papers. Among the most striking insights, the authors find that income inequality is "explained by a growing dispersion in average wages paid by firms," as opposed... MORE

Epstein on the EU and Apple

Competition
Alberto Mingardi
Richard Epstein has an article taking sides with the EU Commission on Apple. Certainly the Commission couldn't have a more eloquent advocate, and Epstein argues forcefully that the Commission "makes a classical liberal argument in favor of free trade across... MORE

They [Hong Ru and Antoinette Schoar] find that less-educated households were offered higher late fees, over-limit fees, and default penalty rates, as well as more upfront inducements, such as low introductory APRs, cash back, and waivers of annual fees. In... MORE

Apple's principled defense

Competition
Alberto Mingardi
Private businesses very seldom mount a principled defence of their behaviour. This is why libertarians like to stress that they are pro-market and not pro-business. Business people, being self-interested like anybody else, will attempt to make the most of the... MORE

Is TOMS Different?

Competition
Emily Skarbek
Poverty, Inc. is the title of a recent documentary created by the Acton Institute. The documentary aims to raise awareness about problems of foreign aid that undermine lasting economic development in African countries. The issue warrants attention. There are things... MORE

Uber Is Even More Valuable Abroad

Central Planning vs. Local Knowledge
David Henderson
In Lima, taxis don't have meters. To use one, you need to negotiate a fare (in Spanish) to your destination. Sometimes they seem to operate collectively, taking on additional passengers. Thanks to Uber, we haven't had to try and navigate... MORE

Supply Management or Cartel Enforcement?

Regulation
David Henderson
The question is not whether to manage supply but who is to manage supply? Should producers of milk, eggs, cheese, and poultry be allowed to manage their supplies or should marketing boards, using the power of the state, do it... MORE

The Uberization of Banking

Finance
David Henderson
But isn't SoFi cherry-picking loans? Absolutely. Why can't banks do this? Because if you use depositor money for loans, as all banks do, you fall under the jurisdiction of the Federal Deposit Insurance Corp. and the Community Reinvestment Act, which... MORE

Moneyball

Business Economics
David Henderson
Update below My wife had surgery yesterday and, with the anesthetic taking hours to wear off, had trouble reading. So I read her my favorite front-page story from a recent Wall Street Journal, a story about her and my... MORE

Implicit Advice from a Nine-Year Old

Competition
David Henderson
We are hearing more and more about 18-to-22 year old college students demanding "safe spaces" on campuses where not only they won't be insulted or verbally attacked but also their most cherished views will not be challenged. Various people who,... MORE

For lawyers, doctors, and dentists-- three of the most over-represented occupations in the top 1 percent--state-level lobbying from professional associations has blocked efforts to expand the supply of qualified workers who could do many of the "professional" job tasks for... MORE

In Praise of Costco Competition

Business Economics
David Henderson
I had a wonderful experience at Costco in Sand City, California on Friday. I spent about $50 and saved about $350 and a lot of time. First, some background. Whenever I travel, I take my pair of glasses that... MORE

High Compliments from Alvin Rabushka

Competition
David Henderson
One of my favorite Hoover colleagues, Alvin Rabuskha, in a post titled "Kudos to Econlog," writes: EconLog is among the top economics blogs and among my favorites. I open it daily and sometimes several times a day. Its bloggers are... MORE

Google vs the EU

Competition
Alberto Mingardi
Google has been targeted by the European Commission, for abusing its dominant position. Philip Booth and I wrote on the subject (here) a few months ago. The EU is concerned that "the company has given an unfair advantage to its... MORE

Bio of Oliver Williamson

Business Economics
David Henderson
The turning point in Williamson's thinking about markets and firms happened when he was an economist in 1966-67 with the Antitrust Division of the U.S. Department of Justice. In his biography at the Nobel site, Williamson writes: Although the leadership... MORE

Thoughts on Debate

Competition
David Henderson
I strongly agree with almost everything that co-blogger Bryan Caplan wrote about debate. I do want to add a couple of things he didn't say. One of them slightly contradicts one of Bryan's pieces of advice. Here's the one that... MORE

Reddit: Lenny Bruce Would Understand

Competition
David Henderson
Capitalism is the best. It's free enterprise. Barter. Gimbels, if I get really rank with the clerk, "Well I don't like this", how I can resolve it? If it really gets ridiculous, I go, "Frig it, man, I walk." What... MORE

Uber banned in Milan too

Competition
Alberto Mingardi
Uber has been banned in different countries in Europe, including Germany, France, and Spain, where the company has evolved its business model in the direction of transporting goods. As you may know, we Italians are often latecomers to new trends:... MORE

Google and the EU foreign policy

Eurozone crisis
Alberto Mingardi
The European Commission is opening an investigation on Google, for alleged anti-competitive practices. The EC is concerned that "the company has given an unfair advantage to its own comparison shopping service, in breach of EU antitrust rules". Wayne Crews has... MORE

Substitution in Nicotine Consumption

Competition
David Henderson
Yesterday's electronic New York Times and today's print edition carries the news story "Use of E-Cigarettes Rises Sharply Among Teenagers, Report Says" by Sabrina Tavernise. It's actually very good. Indeed, it reminds me of some of the best of the... MORE

Will the EU help Uber?

Competition
Alberto Mingardi
The Financial Times reports that the European Commission is planning an in-depth study into the European taxi market, most likely to find a way out to the Uber dead end in which quite a few member-states are finding themselves. Opposition... MORE

Google's Gamble

Competition
David Henderson
Before getting to today's post, two things: 1. Thanks to all the commenters whom I didn't thank individually for their congratulations on my becoming a Full Professor. As one of my former students said on Facebook, he's glad that I'm... MORE

Are Competition and Cooperation Opposites?

Competition
David Henderson
In short, real-world examples of "cooperation" are often not as selfless as, say, volunteering to donate blood or anonymously sending cash to a charity. Instead, real-world cooperation is often enforced by a group of peers, using a combination of economic,... MORE

The Wonder of Competition

Competition
David Henderson
I make myself one large strong cup of coffee early every morning. I use 2 tbsp. of Peet's Major Dickason's Blend. But that's a little too bitter. So I add almost 1 tbsp. of Gevalia Chocolate Mocha. The result is... MORE

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