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

AYA free finbuzz podcast channel on YouTube March 2019

Andy Yeh Alpha

2019-03-31 11:40:00 Sunday ET

AYA free finbuzz podcast channel on YouTube March 2019

AYA Analytica free finbuzz podcast channel on YouTube March 2019 In this podcast, we discuss several topical issues as of March 2019: (1) Sargent-Wallac

+See More

Partisanship matters more than the socioeconomic influence of the rich and elite interest groups.

John Fourier

2019-08-26 11:30:00 Monday ET

Partisanship matters more than the socioeconomic influence of the rich and elite interest groups.

Partisanship matters more than the socioeconomic influence of the rich and elite interest groups. This new trend emerges from the recent empirical analysis

+See More

Lyft seeks to go public with a dual-class stock ownership structure that allows the co-founders to retain significant influence.

Amy Hamilton

2019-03-11 10:32:00 Monday ET

Lyft seeks to go public with a dual-class stock ownership structure that allows the co-founders to retain significant influence.

Lyft seeks to go public with a dual-class stock ownership structure that allows the co-founders to retain significant influence over the rideshare tech unic

+See More

AYA finbuzz podcast offers fresh insights into the latest stock market topics, economic trends, and personal finance inspirations as of December 2019.

Amy Hamilton

2019-12-30 11:28:00 Monday ET

AYA finbuzz podcast offers fresh insights into the latest stock market topics, economic trends, and personal finance inspirations as of December 2019.

AYA Analytica finbuzz podcast channel on YouTube December 2019 In this podcast, we discuss several topical issues as of December 2019: (1) The Trump adm

+See More

BAC chief investment strategist Michael Hartnett points out that U.S. corporate debt accumulation can cause the next financial crisis.

John Fourier

2018-09-23 08:37:00 Sunday ET

BAC chief investment strategist Michael Hartnett points out that U.S. corporate debt accumulation can cause the next financial crisis.

Bank of America Merrill Lynch's chief investment strategist Michael Hartnett points out that U.S. corporate debt (not household credit supply or bank ca

+See More

President Trump meets Chinese President Xi for better economic reforms.

Rose Prince

2017-03-21 09:37:00 Tuesday ET

President Trump meets Chinese President Xi for better economic reforms.

Trump and Xi meet in the most important summit on earth this year. Trump has promised to retaliate against China's currency misalignment, steel trade

+See More