The hottest Market Power Substack posts right now

And their main takeaways
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Top Business Topics

The Fed Is Behind the Capital One/Discover Merger

BIG by Matt Stoller • 29794 implied HN points • 22 Feb 24
💼 Business Monopoly power Market Power Antitrust enforcement
  1. Capital One is trying to purchase Discover for $35 billion due to a loophole the Federal Reserve left in banking laws, which allows Capital One to have control over pricing in ways its competitors cannot.
  2. The credit card system in the U.S. involves a complex web of fees and intermediaries that result in high costs for merchants, driving the merger between Capital One and Discover in a pursuit for more pricing power.
  3. The merger faces opposition from various groups due to concerns about increased monopolization and reduced competition in the credit card industry, highlighting the need for reforms to promote fair commerce and innovation.

Why Monopolies Hate Repair

Fight to Repair • 118 implied HN points • 25 Jan 24
💼 Business Monopolies Repair Market Power Right-to-repair Competition
  1. The fight for the right to repair is closely tied to the fight against monopolies. Companies like Apple use control over repairs to limit competition and maximize profit.
  2. Monopolies can hinder a circular economy by prioritizing profit over repairability. The push for a real circular economy requires challenging traditional capitalist notions.
  3. Legislation like the Digital Markets Act can help combat the restrictive practices of monopolies and create a more repair-friendly future. Advocating for right to repair policies and regulations is crucial in this fight.

Inflation: it's "complicated"

Stay-At-Home Macro (SAHM) • 628 implied HN points • 25 May 23
💰 Finance Inflation Labor Market Market Power
  1. Inflation is influenced by a variety of factors such as supply disruptions, commodity prices, labor market strength, and demand for goods.
  2. The discussion around workers having the upper hand in the labor market is complex and requires consideration of inflation expectations, wage growth, and job market tightness.
  3. Inflation expectations are stable, showing that markets and consumers anticipate a return to normal inflation levels, which is crucial for combating inflation.

Google, Amazon, and Booking: anti-monopoly gathers pace

The Counterbalance • 176 implied HN points • 10 Oct 23
💼 Business Antitrust Monopoly Market Power Regulation
  1. Regulators are taking more action against tech giants like Google, Amazon, and Booking to prevent monopolistic behavior.
  2. The European Commission blocked Booking's acquisition of eTraveli, highlighting concerns about increasing dominance and its impact on competition.
  3. Antitrust cases are evolving to focus on broader systemic power issues within ecosystems, challenging traditional narrow views of harm in mergers.

What happened to markups and dynamism?

Economic Forces • 2 implied HN points • 14 Mar 24
💼 Business Economics Market Power Competition Industry Analysis
  1. Rising market power and falling business dynamism are being discussed as potential signs of competition decline.
  2. Industry-level evidence does not clearly show a causal relationship between rising markups and falling dynamism. Some industries with higher markups saw less decline in dynamism.
  3. Theoretical perspectives on market barriers to entry and free entry show the complexity of the relationship between markups, competition, and dynamism in economics.
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Market Power in Housing Construction

Erdmann Housing Tracker • 2 HN points • 21 Feb 24
💼 Business Market Power Economic Analysis
  1. There is a widely held notion that the homebuilding industry may have oligopolistic power, potentially stemming from a misdiagnosis of the 2008 crisis.
  2. US home construction markets have been experiencing unusual behavior, with demand exceeding supply capacity, builders selling incomplete homes while pushing input prices higher, showing signs not typical of an oligopoly.
  3. Blaming corporations and outsiders for housing issues may perpetuate deep-seated prejudices and prevent solving communal problems effectively.

Scholarly Publishing and its Discontents

Joshua Gans' Newsletter • 0 implied HN points • 02 Feb 17
💼 Business Publishing Economics Market Power
  1. Scholarly publishing faces challenges with market power despite attempts like boycotts and open access to change the status quo.
  2. The book discusses economic theories related to scholarly publishing and suggests untried options like reverse price discrimination and unlocking knowledge inside journals.
  3. The aim of the book is to be a valuable read on the economics of scholarly publishing, focusing on roots of market power and proposing alternative solutions.

Is Kayne West leveraging monopoly power?

Joshua Gans' Newsletter • 0 implied HN points • 16 Feb 16
💼 Business Antitrust Music Monopoly power Competition Market Power
  1. Kayne West released his new album exclusively on Tidal, which he partly owns, possibly leveraging monopoly power to drive traffic away from competitors like Apple.
  2. Determining if Kayne West has monopoly power involves evaluating his impact on the music market and competition levels.
  3. The exclusivity of Kayne West's album on Tidal could potentially lead to increased music service prices, raising concerns about competition and antitrust regulations.

Broadband usage caps are probably inefficient

Joshua Gans' Newsletter • 0 implied HN points • 20 Oct 15
🕹 Technology Internet Market Power Infrastructure
  1. Broadband usage caps can be inefficient and may not benefit consumers in the long run.
  2. Different approaches like offering various bandwidth options can be used to allocate costs instead of implementing caps.
  3. The competitiveness of the broadband market can affect pricing strategies, with ISPs potentially squeezing consumers for more profit.

Are we kidding ourselves on competition?

Joshua Gans' Newsletter • 0 implied HN points • 18 Apr 15
💼 Business Competition Market Power Wealth Inequality
  1. Traditional models of competition in oligopolies may not consider the impact of cross-ownership of shareholders on firm behavior.
  2. Shareholders with stakes in multiple firms might prioritize overall profits rather than just the profits of the firm they own, potentially leading to collusive outcomes.
  3. The distribution of wealth among shareholders and their relation to consumption levels are important factors to consider in addressing market power and wealth inequality.