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

AYA free finbuzz ebook *Trump economic reform* as of January 2019

Andy Yeh Alpha

2019-01-31 08:40:00 Thursday ET

AYA free finbuzz ebook *Trump economic reform* as of January 2019

We offer a free ebook on the latest stock market news, economic trends, and investment memes as of January 2019:  https://www.dropbox.com/s/4d8z

+See More

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history.

Jacob Miramar

2019-01-10 17:31:00 Thursday ET

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history.

The recent Bristol-Myers Squibb acquisition of American Celgene is the $90 billion biggest biotech deal in history. The resultant biopharma goliath would be

+See More

The U.S. Treasury yield curve inverts for the first time since the Global Financial Crisis.

Apple Boston

2019-04-09 11:29:00 Tuesday ET

The U.S. Treasury yield curve inverts for the first time since the Global Financial Crisis.

The U.S. Treasury yield curve inverts for the first time since the Global Financial Crisis. The key term spread between the 10-year and 3-month U.S. Treasur

+See More

Macro economic innovations and asset alphas show significant mutual causation.

Olivia London

2023-12-03 11:33:00 Sunday ET

Macro economic innovations and asset alphas show significant mutual causation.

Macro innovations and asset alphas show significant mutual causation. April 2023   This brief article draws from the recent research publicati

+See More

World politics, economics, and new ideas from the Psychology of Money written by Morgan Housel

Daphne Basel

2023-10-19 08:26:00 Thursday ET

World politics, economics, and new ideas from the Psychology of Money written by Morgan Housel

World politics, economics, and new ideas from the Psychology of Money written by Morgan Housel We would like to provide both economic and non-economic th

+See More

Tech stock prices tumble due to Trump's criticism of Amazon's tax avoidance, Facebook data breach of trust, and Tesla autopilot incidence.

Dan Rochefort

2018-03-29 14:28:00 Thursday ET

Tech stock prices tumble due to Trump's criticism of Amazon's tax avoidance, Facebook data breach of trust, and Tesla autopilot incidence.

Share prices tumble for technology stocks due to Trump's criticism of Amazon's tax avoidance, Facebook user data breach of trust, and Tesla autopilo

+See More