In an eyebrow-raising 2017 study, Princeton’s Alan Krueger and Orley Ashenfelter found that 58% of major chains (Burger King, Jiffy Lube, H&R Block, and dozens more) restrict and sometimes prohibit one franchisee from hiring workers away from another, to the obvious detriment of people seeking to change jobs. The promise of a generous payout is a huge incentive to innovative entrepreneurs. Economics for Managers takes you inside a growing online retailer, an events ticket broker, a multinational publishing company, and other firms evaluating market demand, wrestling with pricing strategy, and looking to identify ways to differentiate themselves in the marketplace. In a healthy economy, companies continually are born, fail, expand, and contract, while new jobs are created and others are destroyed. Sharat Ganapati of Dartmouth, for instance, looks at data from 1972 to 2012 and concludes that increased concentration in manufacturing is correlated with higher prices, which is consistent with declining competition, but also with stable output, which is not. The preponderance of evidence across the proliferating body of research suggests that industry consolidation is causing a troubling decline in competition, limiting the country’s capacity to innovate, create jobs, and sustain overall economic health. His two most recent books are The Future of Europe: Reform or Decline, published by MIT Press, and Fighting Poverty in the US and Europe: A World of Difference, published by Oxford University Press. Visualize global trade data and economic growth opportunities for every country “Although provider concentration could produce efficiencies that benefit purchasers of health care services, the evidence does not point in that direction,” Berkeley’s Brent Fulton concludes in a 2017 review of the literature. The Economics Proficiency Exam will be available online as a self-diagnostic assessment for ECON S-1010, ECON S-1012, and ECON S-1123. (Their clout caught the attention of European regulators long ago.) But when corporations use their market power to shape the policy and regulatory environment in ways that crush competition, problems arise. Previously, I was a postdoctoral scholar at the John F. Kennedy School of Government and Harvard Business School. In this article, I examine the troubling effect of industry consolidation on competition. It’s a similar story in the beer business. States generally don’t recognize credentials issued by other states, making it hard for licensed workers to move across state lines and protecting existing license holders in any state. Course description. Global Case Competition Participants, In the last year, the COVID-19 pandemic has changed our lives. Competitive advantage lies increasingly in local things—knowledge, relationships, and motivation—that distant rivals cannot replicate. Today's economic map of the world is characterized by what Porter calls clusters: critical masses in one place of linked industries and institutions—from suppliers to universities to government agencies—that enjoy unusual competitive success in a particular field. High and rising profits in an increasingly concentrated market are typically a sign of lessening competition and increased market power by dominant firms. That’s good for shareholders, of course, but it’s not so good for consumers or the overall economy. 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