Technology confuses everyone
A blog post by a leading IT security expert explains why the market for security products fails because buyers are unable to evaluate products. This is a more striking example than those I presented earlier because it concerns sophisticated professional buyers like banks and intelligence services. (more…)
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Funny search query
Someone got to a page on Money Terms that explains a metric for airline’s capacity by using the following search at MSN search “google airline seats”. Obviously someone had been advised to “google” for the term (more…)
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How to exploit monopolies and distort markets
Here are a few ways in which a company can exploit a strong market position to extend an existing monopoly, eliminate any remaining competition, and extract the greatest revenues at the lowest cost. (more…)
Income inequality and incentives
An article by Robert H Frank on trickle down economics in the NY Times points out that there is little correlation between high earners pay and how hard they work. This is backing for my views on directors pay. (more…)
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How the economy should work
Fabian Tassano has responded to my post on the problems of the emergence of monopolies and oligopolies in more and more markets. He appears to think it is less damaging than I do, and he also wants to know what I think the best alternatives are. (more…)
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Emerging markets, inflation and currency risk
A post at Interactive Investor Blog on the nominal good performance of Zimbabwe’s stock exchange, is a useful reminder of the importance of real returns. This works both ways, and is why equity investors should not worry too much about currency risk. (more…)
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Private monopoly vs public monopoly
The most sane (albeit not against a very high standard) of a number libertarian (or, at any rate, very pro-market) bloggers in Britain that I read, admits that network effects mean that many markets tend to “collapse” into monopolies. I would add that many more markets tend to become oligopolies or cartels. In the face of this, why does he still believe that leaving everything to the markets is the best way to run an economy? (more…)
Low taxes do not attract investment
It appears that cutting corporate taxes does not make a country more attractive to investors. I do not find this surprising. The long term benefits of the right government expenditure (on education, infrastructure and health, for example) are obvious. So why are governments so keen on tax cuts? (more…)
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Can Woolworths recover?
I have never liked Woolworths, with its weak brand, unfocused retail format, and uncertain wholesale business. Now, at a time when things could not look worse, I am changing my mind. (more…)
Silliest blog post
This has got to be one of the silliest statements ever made on any of the blogs I read regularly. (more…)
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