martedì 22 dicembre 2015

In my youth, I saw Industrial Organization as the heart of our secular religion.  My history textbooks loudly and repeatedly decried "monopoly"; teachers, peers, and parents echoed their complaints.  Since the late-90s, however, such complaints have faded from public discourse.  The reason isn't that plausible examples of monopolies have vanished.  If anything, firms that look like monopolies - Amazon, CostCo, WalMart, Starbucks, Uber, Facebook, Twitter - are higher-profile than ever.  But the insight I preached in my youth - the main way firms obtain and hold monopoly on the free market is reliably giving consumers great deals - is almost conventional wisdom.  What modern consumer fears Amazon or Starbucks

Labor Econ Versus the World: Further Thoughts, by Bryan Caplan