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All the economists who told the FTC we shouldn't break up Big Tech are paid by Big Tech
From the Open Markets Institute's Mat Stoller and Austin Frederick, who analyzed the FTC's panel, "The Current Economic Understanding of Multi-Sided Platforms," in which economic experts told the regulator that Big Tech's monopoly power just isn't a problem: "every single economist testifying on the issue of corporate concentration derived income, directly or indirectly, from large corporations. Beyond that, the hearing itself was held at the Antonin Scalia Law School, which is financed by Google and Amazon."
Here's a tldr version of the economists' argument: Big Tech isn't big because we stopped enforcing antitrust, it's because of globalism, network effects and first mover advantage (AKA, "My problems aren't caused by my alcoholism, it's because the world is so screwed up") and, second, "Monopolies aren't as bad as you think they are" (AKA "What's so bad about needing a drink or three every night?").
Read the restFor instance, one panelist was MIT professor of management Catherine Tucker. She isnt just a professor, though; she also moonlights at the economic consulting firm Analysis Group, has consulted for Microsoft and Facebook, and has received a $155,000 research grant from Google.
Wharton Professor Katja Seim testified as well. She has a second job working for Vega Economics, which sells analysis to many of the major law firms in D.C., who in turn sell services to Fortune 500 companies. She stressed that one normal red flag for monopolysupra-normal profit marginsshould not necessarily concern regulators when it comes to tech platforms. (FF to 7:15-7:45).
Also testifying was Boston University economist Michael Salinger, who also works at Charles River Associates.
Original Link: http://feeds.boingboing.net/~r/boingboing/iBag/~3/zrR39WCvCbg/incentives-matter-2.html