“Digital platforms force a rethink in competition theory” (FT)

Great FT article on how to think about monopolistic power in the digital platform age. Pre-digital v. digital (my emphasis): "In pre-digital days, the question an economist would ask is whether the efficiencies gained by big or merging companies would be passed on to consumers in the form of lower prices. Another key question was … Continue reading “Digital platforms force a rethink in competition theory” (FT)

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Millennials: Future Source of Margin Compression?

In a recent Barron's column, Jeremy Grantham penned a tortuous essay outlining the obvious: Stock markets do not see large-scale P/E ratio compression outside of recessionary US economic conditions. In short, he says the equity market's currently elevated P/E ratio is simply a reflection of high profit margins and low inflation, and until either one … Continue reading Millennials: Future Source of Margin Compression?