U.S. tech titans increasingly hire PhD economists to help solve business problems.

Monica McNeil

2019-03-19 12:35:00 Tue ET

U.S. tech titans increasingly hire PhD economists to help solve business problems. These key tech titans include Facebook, Amazon, Microsoft, Google, Apple, Netflix, and Twitter (FAMGANT). Most PhD economists exhibit at least 2 critical skills that can contribute to effective business solutions. First, many economists implement effective empirical methods and quantitative tools to ferret out *causal relations* in business data. Second, PhD economists can understand the useful design of both *effective incentives and market mechanisms* for better business optimization. In practice, these PhD economists help demystify many empirical puzzles in the tech sector. For instance, some economists empirically find that Uber Express Pool may inadvertently draw in active users from some other Uber products without growing the full Uber user base. Also, several other economists show that eBay tends to syphon off people who would have come through organic search when the online auction website advertises on Google. Moreover, some recent economic research demonstrates that many African-American Airbnb users experience rampant racial discrimination.

If tech platforms involve matching users or businesses, market design economists can likely help guide these key business decisions. Modern examples of disruptive platform design include Amazon, Airbnb, Tinder, TripAdvisor, and so forth. If scale economies are critical for the business, several major mergers, acquisitions, and exclusive deals may dramatically alter the strategic industry structure and market environment. For instance, Apple and Alphabet are the dominant duo in the iOS-Android market for mobile devices; Microsoft remains a primary software market player with its Office Suite and Windows operating system; Intel and Qualcomm specialize and dominate in the tech-savvy market for microchips; Google acquires 90% of U.S. online search traffic; Facebook extracts healthy profits in social media advertisements; and Netflix retains competitive moats and niches in the lucrative business of high-speed original video content distribution.

If tech companies need to analyze large-scale user data to make better business decisions, econometricians apply logistic regressions, panel estimation methods, and time-series models to derive informative business insights into user behaviors, product reviews, and customer interests and preferences. Smart data analyzers include Amazon, Apple, Facebook, Twitter, eBay, PayPal, and IBM etc. In contrast to doctors, engineers, and lawyers who may focus on specific mechanical details and techniques, most economists focus on the bigger picture when they implement empirical methods to solve practical business problems. Overall, most economists can see both the trees and the forest in important business decisions when push comes to shove.

 


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

We can learn much from the frugal habits and lifestyles of several billionaires.

Joseph Corr

2016-10-01 00:00:00 Saturday ET

We can learn much from the frugal habits and lifestyles of several billionaires.

We can learn much from the frugal habits and lifestyles of several billionaires on earth. Warren Buffett, Chairman and CEO of Berkshire Hathaway, still l

+See More

Amy Chua and Jed Rubenfeld suggest that relatively successful ethnic groups exhibit common cultural traits in America.

Laura Hermes

2023-05-21 12:26:00 Sunday ET

Amy Chua and Jed Rubenfeld suggest that relatively successful ethnic groups exhibit common cultural traits in America.

Amy Chua and Jed Rubenfeld suggest that relatively successful ethnic groups exhibit common cultural traits in America. Amy Chua and Jed Rubenfeld (2015)

+See More

Apple pursues an early harvest strategy that focuses on extracting healthy profits from the Mac, iPhone, and iPad.

Monica McNeil

2017-05-01 09:45:00 Monday ET

Apple pursues an early harvest strategy that focuses on extracting healthy profits from the Mac, iPhone, and iPad.

Apple now pursues an early harvest strategy that focuses on extracting healthy profits from a relatively static market for the Mac, iPhone, and iPad, all of

+See More

Global stock market investors foresee the harbinger of a major economic downturn.

Monica McNeil

2019-09-17 08:33:00 Tuesday ET

Global stock market investors foresee the harbinger of a major economic downturn.

Global stock market investors foresee the harbinger of a major economic downturn. Many stock market investors become anxious due to negative term spreads an

+See More

Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.

Joseph Corr

2017-12-14 12:41:00 Thursday ET

Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.

Federal Reserve raises the interest rate by 25 basis points to the target range of 1.25% to 1.5% as FOMC members revise up their GDP estimate from 2% to 2.5

+See More

Congresswoman Alexandria Ocasio-Cortez proposes greater public debt finance with minimal tax increases for the Green New Deal.

James Campbell

2019-03-23 09:31:00 Saturday ET

Congresswoman Alexandria Ocasio-Cortez proposes greater public debt finance with minimal tax increases for the Green New Deal.

Congresswoman Alexandria Ocasio-Cortez proposes greater public debt finance with minimal tax increases for the Green New Deal. In accordance with the modern

+See More