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

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties.

Rose Prince

2018-10-15 09:33:00 Monday ET

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties.

Several pharmaceutical companies now switch their primary focus from generic prescription drugs to medical specialties such as cardiovascular medications an

+See More

President Trump unveils his ambitious $1.5 trillion public infrastructure plan.

Daisy Harvey

2018-02-11 07:30:00 Sunday ET

President Trump unveils his ambitious $1.5 trillion public infrastructure plan.

President Trump unveils his ambitious $1.5 trillion public infrastructure plan. Trump proposes offering $100 billion in federal incentives to encourage stat

+See More

Former basketball star Shaq O'Neal learns a major money lesson from Amazon Founder Jeff Bezos.

Laura Hermes

2019-08-06 07:28:00 Tuesday ET

Former basketball star Shaq O'Neal learns a major money lesson from Amazon Founder Jeff Bezos.

Former basketball star Shaq O'Neal has almost quadrupled his net worth once he learns and applies an ingenious investment strategy from Amazon Founder J

+See More

A small fraction of the population enjoys most capital and wealth creation.

Jacob Miramar

2017-03-15 08:46:00 Wednesday ET

A small fraction of the population enjoys most capital and wealth creation.

The heuristic rule of *accumulative advantage* suggests that a small fraction of the population enjoys a large proportion of both capital and wealth creatio

+See More

American state attorneys general begin bipartisan antitrust investigations into Apple, Amazon, Facebook, and Google.

Charlene Vos

2019-10-21 10:35:00 Monday ET

American state attorneys general begin bipartisan antitrust investigations into Apple, Amazon, Facebook, and Google.

American state attorneys general begin bipartisan antitrust investigations into the market power and corporate behavior of central tech titans such as Apple

+See More

Amazon follows Apple to become the second U.S. public corporation to hit $1 trillion stock market valuation.

Dan Rochefort

2018-09-03 09:31:00 Monday ET

Amazon follows Apple to become the second U.S. public corporation to hit $1 trillion stock market valuation.

Amazon follows Apple to become the second American public corporation to hit $1 trillion stock market valuation. Amazon's founder and chairman Jeff Bezo

+See More