The research on whether common ownership harms competition may be inconclusive, but the work is increasingly vital as the stakes in major companies held by large institutional investors continue to rise dramatically. In the 2000s, under Barack Obama, the stance became somewhat more aggressive, but it remains unclear whether his executive orders to promote competitive markets, issued in the closing innings of his administration, were mere symbolism or a serious effort. His research focuses on macroeconomics, finance, and labor economics. Critics also take issue with Schmalz’s methods, pointing out that the research relies on the way money managers are required to report holdings, which combines shares held for all sorts of clients. This is not necessarily a bad thing. Much of the increase is a result of states extending the occupations for which licenses are required. But in practice, location remains central to competition. The worrisome aspects of increasing industry consolidation can’t be addressed solely through antitrust enforcement. We now operate in a winner-take-most world, the argument goes, in which superstar firms with higher productivity capture a larger slice of the market; Amazon, Apple, Facebook, and Google have risen to the top because of their propensity to innovate. Harvard Business Review 76, no. Unable to overcome the opposition of the Obama administration, however, AT&T abandoned the deal five months after announcing it. Over the past few years, the economics team has participated at a number of competitions. Recent research suggests that the average markup — the difference between the prices firms charge and products’ marginal cost — is rising in American business, and rising fastest for the most profitable firms. The Economics Proficiency Exam will be available online as a self-diagnostic assessment for ECON S-1010, ECON S-1012, and ECON S-1123. But in the same year, FTC sought to block a merger between Steris and Synergy Health, the number two and three companies in the health care facility-sterilization business. This line of thinking is controversial. Ph.D. in Economics. The more lenient approach relied on three ideas: that harm from increased concentration had to be weighed against the efficiencies to be achieved, that horizontal mergers between competitors were harmful only if they led to less output, and that vertical mergers between supplier and buyer generally were not a problem. Visualize global trade data and economic growth opportunities for every country The Harvard Undergraduate Economics Association (HUEA) is organizing its flagship International Essay Competition this November with the collaboration of Harvard College Economics Review. Economic theory suggests that oligopolies — industries in which a few firms dominate without much competition — lead to increases in price and reductions in output. How about when a big firm swallows a tiny firm that might have grown into a mighty oak? Course description. A federal judge disagreed, and the merger was consummated. Legere dumped subsidies, lowered prices, offered more data and often poked fun at rivals.” T-Mobile thrived, signing up 4.4 million new subscribers in 2013. And BlackRock is hardly the reincarnation of John D. Rockefeller; the firm is managing other people’s money. Evidence that there’s too little competition is accumulating. His research lies primarily within this field, and studies how firms bargain, contract and form supply relationships in imperfectly competitive markets. Seen through the villain lens, however, Facebook’s relentless swallowing up of promising young firms effectively squashes the potential of upstarts to become competitors. When he took another look, in 2017, the story had changed. CHANGES TO 2020 REGISTRATION GUIDELINES. With scholarly caution, he noted “a moderate but continued increase in aggregate concentration.” The Economist, using U.S. Economic Census data, found a similar trend. The winners are winning bigger, while the number of new start-ups is falling. He has published five books and edited many more. Outside of manufacturing, industry concentration is correlated with higher output and stable prices, neither of which conforms to the theory of oligopoly and declining competition. The team had their best-ever showing at the Harvard Pre-collegiate Economics Challenge (HPEC) last Saturday, with their A team making the finals and placing second in a field of 63 teams from around the world. Many also have dissertation committees that include faculty members of the economics department.We encourage tho… The most famous examples are found in Silicon Valley and Hollywood, but clusters dot the world's landscape. The U.S. approach to antitrust has evolved significantly over the past century. In a healthy economy, companies continually are born, fail, expand, and contract, while new jobs are created and others are destroyed. Research Data Management @Harvard “Most firms are actively engaged in protecting their source of competitive advantage through a mixture of innovation, lobbying, or both,” says Luigi Zingales of the University of Chicago. Of the 893 industries it examined — from dog food and battery makers to airlines and credit cards — two-thirds had grown more concentrated since 2007. “Concentration could arise from anticompetitive forces,” Autor and his colleagues note, “whereby dominant firms are increasingly able to prevent actual and potential rivals from entering and expanding.” Indeed, research shows that incumbent firms in a wide range of industries — airlines, beer, pharmaceuticals, hospitals — are wielding market power in ways that prevent rivals from emerging and thriving. 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