It's OK to talk about the news especially if it's used as a springboard to discuss everyday economics. I get the principle, but there's no need to constrain your content this way. #ForYourContent 👍
Brian, you said: "The second way the acquisition could hurt innovation is that the FB/IG combo could scare off more new competitors more than they would separately. I’m struggling to see how this works since we are assuming that now FB/IG is offering higher-priced products of worse quality."
Surely there are network effects that can explain how this would work? Even if the FB/IG firm is offering higher-priced, worse-quality products, I can imagine a situation where new competitors struggle to enter the market due to the new, larger incumbent's entrenched position. I don't know how to measure this, or if it is a factor for anti-trust law, but it seems like a relevant concern.
It's OK to talk about the news especially if it's used as a springboard to discuss everyday economics. I get the principle, but there's no need to constrain your content this way. #ForYourContent 👍
It's mostly tongue in cheek, making fun of myself and how un-timely most of our stuff is :)
Brian, you said: "The second way the acquisition could hurt innovation is that the FB/IG combo could scare off more new competitors more than they would separately. I’m struggling to see how this works since we are assuming that now FB/IG is offering higher-priced products of worse quality."
Surely there are network effects that can explain how this would work? Even if the FB/IG firm is offering higher-priced, worse-quality products, I can imagine a situation where new competitors struggle to enter the market due to the new, larger incumbent's entrenched position. I don't know how to measure this, or if it is a factor for anti-trust law, but it seems like a relevant concern.