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

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

Jonathan Rauch on the uncomfortable necessity of middlemen in transactional politics

In his recent work Jonathan Rauch has been writing about what I’ve unwillingly concluded are some uncomfortable home truths about politics. In a lot of places, especially the U.S., politics is more counterproductively fraught and fractious than it has been in the past century. This is true despite a near century of Progressive and populist … More Jonathan Rauch on the uncomfortable necessity of middlemen in transactional politics

The Economist on adverse selection and moral hazard

The Economist is running a series on classic articles that have transformed economics, starting with George Akerlof’s 1970 “Market for Lemons” paper. Akerlof catalyzed the field of information economics by pointing out possible consequences of asymmetric information in the case where one party to a transaction has more complete information about product quality than the … More The Economist on adverse selection and moral hazard

A facelift and a schedule

I’ve made some changes to the KP page. First and foremost I asked my brilliant, creative friend Danell Drazek to design a logo and color scheme for me, which inspired the facelift. If you need any design work I recommend you contact her! Second, I’m going to schedule new content every Wednesday. Mike and I … More A facelift and a schedule