Benjamin M. Friedman, Robert M. Solow, eds.'s Daedalus (Fall 2010): On the Financial Crisis & Economic PDF

By Benjamin M. Friedman, Robert M. Solow, eds.

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Additional resources for Daedalus (Fall 2010): On the Financial Crisis & Economic Policy

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On the other side, Microsoft is an oligopoly supplier of a valuable commodity, game boxes. 3 Six-Tiered Game Console Oligonomy Suppliers to subcomponent makers Subcomponent makers Assemblers and manufacturers Game console companies Big-box retailers and online retailers Consumers 28 / Market Domination! 4 Five-Tiered Beef Oligonomy Ranchers Feedlots Beef packers Supermarkets Shoppers along with online stores. On the other hand, the top retailers form an oligopsony, so Microsoft can’t take them for granted either.

Silk comes in a half-dozen flavors and variations, which now have 24 / Market Domination! their own row in most supermarket refrigerator cases alongside the skim and 2 percent milk. The point is that Dean Foods already had massive power as a $10 billion a year company, and Dean Foods’ executives could get Safeway (a $38 billion company) and Starbucks (a $6 billion company) executives to return their phone calls, and it was easy to add the Silk products to the array of products they were already delivering.

The objective is to maximize control, to no longer be at the mercy of some other company that has its own conflicting interests. The consequence is usually increased control, but also increased risk. The risk comes in part from the pressure to use internal resources, when more effective or less costly alternatives are available on the outside. For example, an inhouse print and design department is something many companies acquire or build, thinking they can get better response and lower costs from an internal operation.

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Daedalus (Fall 2010): On the Financial Crisis & Economic Policy by Benjamin M. Friedman, Robert M. Solow, eds.

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