Samir’s Selection 10/14/2014 (p.m.)
The Nobel prize goes to Jean Tirole >>>
[Jean Tirole] has been awarded the prize for his microeconomic research investigating how large firms should be regulated in order to prevent consumers being damaged by their monopolistic behaviour…he has clarified how to understand and regulate industries with a few powerful firms…The best regulation or competition policy should therefore be carefully adapted to every industry’s specific conditions. In a series of articles and books, Jean Tirole has presented a general framework for designing such policies and applied it to a number of industries, ranging from telecommunications to banking. Drawing on these new insights, governments can better encourage powerful firms to become more productive and, at the same time, prevent them from harming competitors and customers…Most notably, his ideas of how to regulate industries dominated by a single large firm are helping to produce strategies for how to prevent Google from using its vast market share in the internet-search business to behave as a monopoly.
Jean Tirole: 5 things to know about the Nobel Prize winner’s work >>>
[Jean Tirole] argued there is no blanket way to regulate an oligopoly…One of the big problems with regulating oligopolies was the lack of full information on issues such as costs and pricing at the companies. Along with his research partner, the late Jean-Jacques Laffont, in the 1980s, he developed the idea of using complex industry-specific incentive contracts to regulate oligopolies…predatory pricingplatform marketsMr Tirole’s work is becoming more and more important. New corporate giants such as Apple and Google compete, but in a way that has little to do with the classic economic model of many producers and many customers trading an identical product. Instead, their prices may be free to the consumer, while their competition on new technology often leads to at least temporary dominance of a market. How to regulate such companies is a pressing policy question.
Posted from Diigo. The rest of my favorite links are here.