Product market competition and online ecommerce help constrain money supply growth with low inflation.

Peter Prince

2019-09-25 15:33:00 Wed ET

Product market competition and online e-commerce help constrain money supply growth with low inflation. Key e-commerce retailers such as Amazon, Alibaba, and eBay use fast multi-channel pricing algorithms to set the retail prices of consumer goods. For central bankers and monetary policymakers who often need to monitor transitional inflation dynamism over time, retail prices are subject to more frequent adjustments with less insulation from common nationwide shocks. Intense product market competition poses a new economic risk that some retailers may institute an innocuous deterioration in product quality instead of upward price revision.

Online retailers can use smart retail-pricing algorithms to take into account energy costs, exchange rate fluctuations, and other fundamental factors that may affect both production and delivery prices. Product market power concentration further empowers the top 10% superstar companies to capture almost 80% of net profits in Corporate America. These superstar companies retain their competitive moats over the course of more than one single real business cycle (about 7-to-9 years). This anti-competitive clout issue calls for tougher antitrust scrutiny for tech titans (Apple, Amazon, Alibaba, Facebook, Google, and Twitter), big biotech bellwethers (Johnson & Johnson, Pfizer, Merck, Abbot, Amgen, and Bristol-Myers Squibb), and telecoms (Verizon, AT&T, Sprint, and T-Mobile).

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

U.S. federalism and domestic institutional arrangements

Olivia London

2023-12-10 09:23:00 Sunday ET

U.S. federalism and domestic institutional arrangements

U.S. federalism and domestic institutional arrangements A given country is federal when both of its national and sub-national governments exercise separa

+See More

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members.

Laura Hermes

2020-06-17 09:23:00 Wednesday ET

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members.

Successful founders focus on their continuous growth, passion, perseverance, and the collective wisdom of most team members. William Ferguson (2013) &

+See More

Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism.

Daisy Harvey

2023-06-21 12:32:00 Wednesday ET

Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism.

Michael Sandel analyzes what money cannot buy in stark contrast to the free market ideology of capitalism. Michael Sandel (2013)   What money

+See More

Kobe Bryant and several other star athletes have been smart savvy investors.

Charlene Vos

2019-08-08 09:35:00 Thursday ET

Kobe Bryant and several other star athletes have been smart savvy investors.

Kobe Bryant and several other star athletes have been smart savvy investors. In collaboration with former Web.com CEO Jeff Stibel, the NBA champion invests

+See More

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha

2018-11-30 12:42:00 Friday ET

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube November 2018 AYA Analytica is our online regular podcast and news

+See More

Empirical tests of multi-factor models for asset return prediction

Apple Boston

2022-02-25 00:00:00 Friday ET

Empirical tests of multi-factor models for asset return prediction

Empirical tests of multi-factor models for asset return prediction  The capital asset pricing model (CAPM) of Sharpe (1964), Lintner (1965), and Bla

+See More