Apple’s jack and incumbent vertical market power

  Apple’s controversial decision to remove the universal 3.5mm audio jack from its just-released iPhone 7 has several economic dimensions. All of them are a consequence of Apple’s proprietary architecture (colloquially known as “Steve’s walled garden”) and the extent to which Apple is trying to/able to exercise incumbent vertical market power. How much market power … More Apple’s jack and incumbent vertical market power

House Energy and Power Subcommittee takes a look at the Federal Power Act; one small suggestion for reform

As had been announced in June of this year, the Energy and Power subcommittee of the U.S. House of Representatives is devoting some time to a deep look into the Federal Power Act (FPA). At the time of the June announcement the committee sent a letter to Federal Energy Regulatory Commission (FERC) saying: As you know, the … More House Energy and Power Subcommittee takes a look at the Federal Power Act; one small suggestion for reform

Pharmaceuticals and multi-layered government-granted monopoly

Mylan’s price increase of the EpiPen in late August has caused consternation and a lot of debate about the reasons why Mylan has been able to increase the EpiPen price so dramatically above its production cost. Don’t forget that production cost includes the time and resources that comprise FDA compliance costs, even for generics like … More Pharmaceuticals and multi-layered government-granted monopoly