Matt Yglesias suggests that most capitalists don’t like competition. That is true, but it isn’t new: Adam Smith said it a long time ago, and I doubt the observation was particularly original to him. Harvard has an entire course called strategy that is, quite a bit, about how firms engage in what economists call imperfect (or “monopolistic”) competition. It’s all about increasing the “wedge,” i.e. raising your customers’ willingness-to-pay while driving down your costs. (This is entirely legal and often great for customers ... but it isn’t growing wheat.) Meanwhile, there’s a whole literature about “rent-seeking” behavior, some of which I have contributed to in a small way.
It may be that Matt really didn’t read it anywhere specific, or it may just be that he read it in too many places to remember.
Another beautiful day in Paris during which I have not left the apartment. Ah, well, it beats not leaving the apartment in Boston.
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