Discover millions of ebooks, audiobooks, and so much more with a free trial

Only $11.99/month after trial. Cancel anytime.

The Profit Paradox: How Thriving Firms Threaten the Future of Work
The Profit Paradox: How Thriving Firms Threaten the Future of Work
The Profit Paradox: How Thriving Firms Threaten the Future of Work
Ebook473 pages14 hours

The Profit Paradox: How Thriving Firms Threaten the Future of Work

Rating: 4.5 out of 5 stars

4.5/5

()

Read preview

About this ebook

A pioneering account of the surging global tide of market power—and how it stifles workers around the world

In an era of technological progress and easy communication, it might seem reasonable to assume that the world’s working people have never had it so good. But wages are stagnant and prices are rising, so that everything from a bottle of beer to a prosthetic hip costs more. Economist Jan Eeckhout shows how this is due to a small number of companies exploiting an unbridled rise in market power—the ability to set prices higher than they could in a properly functioning competitive marketplace. Drawing on his own groundbreaking research and telling the stories of common workers throughout, he demonstrates how market power has suffocated the world of work, and how, without better mechanisms to ensure competition, it could lead to disastrous market corrections and political turmoil.

The Profit Paradox describes how, over the past forty years, a handful of companies have reaped most of the rewards of technological advancements—acquiring rivals, securing huge profits, and creating brutally unequal outcomes for workers. Instead of passing on the benefits of better technologies to consumers through lower prices, these “superstar” companies leverage new technologies to charge even higher prices. The consequences are already immense, from unnecessarily high prices for virtually everything, to fewer startups that can compete, to rising inequality and stagnating wages for most workers, to severely limited social mobility.

A provocative investigation into how market power hurts average working people, The Profit Paradox also offers concrete solutions for fixing the problem and restoring a healthy economy.

LanguageEnglish
Release dateOct 25, 2022
ISBN9780691241715

Related to The Profit Paradox

Related ebooks

Economics For You

View More

Related articles

Reviews for The Profit Paradox

Rating: 4.5 out of 5 stars
4.5/5

4 ratings1 review

What did you think?

Tap to rate

Review must be at least 10 words

  • Rating: 5 out of 5 stars
    5/5
    This is an excellent book that must make you think. It's a book that must make you think about market power, the rise of inequality, and the loss of the dignity of work. It is not an easy book to read - you must read this slowly. The objective of a dominant firm, as he says, is not to innovate. It is to prevent others from entering the market. to quote Warren Buffet, they build walls, or moats around their business, which make it difficult for others to enter. This then creates conditions in which a few firms dominate the landscape, and this is dangerous. the analysis is excellent, and I like the recommendations at the end. This is a book for our times. Read this in conjunction with "The Tyranny of Merit".

Book preview

The Profit Paradox - Jan Eeckhout

8ebook_preview_excerpt.html}rǖD$ $A |WK "#R1L^}Cզ?wm5vmS%}ϹׇH|]mxw//NS'OC6'vY {׹,>ݧ?}Y8<;<{[[/>^~pV{Q|zWogۧjXhMᖃnڮ,bqX]x.߽->=ɢ..n?wݟ^<~p|rpYne6=xAxTwG~ƹ ǀBJjx G~.kWn^iٴc"?W=U+>U|B sW⏮ a&.>cq&'Z\ҥ?sZBaEapX7^UNB :]wpn72$<fcq)C#rp#H:)nXۍNi(6+?<{ᥨ^D¦7Nײϊ~de!Ux'iJnV}>Ҵv ˃}U_cD5f3 oqhv]-k,> eo7?r~woE^B%M8q,+}YR-p<4هw ੊7qfM{/.E4-~!L%?4( ZP*Mo^||]J/([doũHDݥoR, LG+{X-ڦP\ O=_Q O43A/A nX=ߘD^/FsTVh)჻6fJ}.sw?^ˆ=Ie~C%iGutz1cGI[񱿅$p?>~@;#O!ii#߂m%4[SSϋ[68.Ql[`㓓/i%Rۮw?>G=spO?nU-rPٴוOJ!}"ksnDE[>䊥hiQc̀"Uaҍτ}ot|M4CD;[RAKpHY 8p,e`QC>@ {vfXR$CP=,Hh+[+LD܎6o}\0' !U'tjb8:ZI#Az9 V h>{GãlvEi?)v*y ѕ"m7Μ8 9zxJyGbo'e)@kp`4lqrW՞FTSS$SkzXwXTg,$ GPa&ޓ PO]XPm:!4q$j;f} :_UWhw%D' lo+KLyEPrq#oZȅێR+ Qz"N7Wp{uieeS^%t¹rPŁvL8*j_LHz1rĆ)9A0)hDH ndb/l xpdAsJ2Nj5.` Zf,xP&XPd(d[ÊPV]͂{>n!H+7!Ke*rBxW%rVCvll v[>ȹ_w\|(LC 2)ؕ.9\`u $ =XܹoFP$+ _Jq\= TIEdɯ:2B]٘ UFY .GЎ+lo~iwx`?a/DPSƓMl2{@cud/r4֡cmS(A.)LOݸf\}$Q_r̲$RYSYԢd.b{k cvc? |(] }P7ZX+$W&ǽnjY7k@Q6"1KfReG{?n gf** ĸ01" nzȷ O9>D=xW cQ;HVdQ,+TKE b# -; 2(Xe!~D3}Љ&jLH.,H ,S 0]5dk}2og~>~pt5E^A"F'/ѱqۭY},T*lqp]̨po읲0 ^:Y(Pa3)zWag%)q^Dait*'ܭ`t@UZ5;Di=F Qe'2$h5r-W/*02 >0eUkbӸ$Z+87@՚{-dBMgWQX0fH{K)V>䞨j퐬CW/Zޔ/Q "^~:F>Q,m]|ƉqJ5}OI"—nݨF>=.;efhC)B2p&.[}=oNu&rH 5_r͑K.1=.+ /Pqjz[g|µ#ܥOO>ĉkk?I=;^?‰Kl,댄pt<],Qi A*s/#kl7 yohD|oEwbRXM}i` #mU-\X}Vi-5O7akcG5J.B@DvP| nm_sB%U 8 KDH$Q `oo3Mc0JCJнVX2V9҆62?Dan%p&??"7;vA\[",ҙ Csɸd,jfTly8s{PV2hWBFW5ک m I 4d)78]]J;L 2DQ 㑬R#ith1{%7/ȄkW&*RVjqgΣ\ -!W]{2 x3::|bPO4l`^V+ #998l!IJSPM`y9<3^GĆ^[ l :YTZ 4Bc0on0TdŏMyBZWX #a uρf0#+&_TղpkN\>a-s!"ٗǵ[5Bz:/V堭*+R EFW y5ND˯={b2RK 00;=fVyNvBLYuec E!1 ԰T17&?19/t$FwIۈ$qˏ}rSQyȜ [cHMxÚ[xɴY̔YϢ?PT`onne5rN $ >AѪ3]a,$P DNO\ڻ2Z䠀 --G&(ec*C EuS'7!ʼ9)zWx3/L8pM Bٸb|ʮnuGs3{I ѪI)+ѩbBx$5 ĢrY8a$,L* 9psR_5BM_W]r:nVMP2:w c91n|݂@bڪ>|QQoHJ푖D\qG"qL#Č\qSdVMF4![n3 ThMIf 02r ;1ɹ0Ms\>9hS7ոCg-^ ǾB>U!: 7; V m $i1<\]ŵpB;,*nf7vG*Z–5INV K \] <*@LG1|_4'OUs7J!i:9WXm[ aQ) B K=ܒkI ^bzƞZ],|@ь K[lph YzлadXp9lYfna<40L'!xl(]7cGQoׯA(bE%k{nުU(,Q͐3L)5vo\fS*B9 Z8H^>oOf;`{3ba tY0W; 0y\]6SPHv1ex 8Oްl+N77ϳGE\PVm[fqWP8ߋ|F^\n'9KȠN.K!" : 6zpᥡ"V1;G=1T)vLA4DȉCQ !c/Kf;Ǹ $~*=- /O3_ 6HkBZJI+$?H1sa-LYOƐ؄rlckzEݯ:YfT}+]ξ52j/o5 ư+1ew4:(3HMw po#3RRݡLN6`";Z(i}0,`eyXg{>wTWmax77ftRdU:(IZHk#onϯ.O$/Vt S rsn (λ&H&NP֕Fܪ5$Rȅ^|s\g"Q6 2=Q *F9fF>"ƄTUM4C;M[+.ۍee_վ~Ul?yq2|C{BN4a7Hmn>|]yV)mو&iYпB h"f! s$E> imۦ5M e5<@Y0$&8n6}~?D|;.l%B,B . m?D[lg_b\: <DM0)*aP^t C@b4qv83r[@Θˁ]*ŀD&y)K*殹"rkKt^4R0*ګ%@]`_R0[W!k3-XW zP<۰O&ƖRt<LJmA?ق(T-]3b N/d5f&+v*fR f&鳌ِHiZ[:S1a|D70Кm c;M?cl,  s4SenN hZx 7!#T=e"Ty( EwBY2n@k,S{a 8Âa2bnGlePڵVCsGOH.xfԴ9P%~H=_5G>%A !p+L{56Mܙ˳/8/#>9,XҗG+5 57L1F?skPni͑zq8808@ 'm H2U\K14c'B,Y@۠j(b smͨ'8(}%֤*k A77`/dJ+ D噣\V~KqfW,PmGq*:K)v!^u+9iyTodQBD_Z^6ҸB';MqS-Bf>piޠYi蓂cQ{S ʯ)˘aGA gvJE[M5L#v Gq6DRՈ{ ]~EeޱW @5j|cRxJ0X96imD[RX!ی_X1?5y8@̦jU܈3v `8 gR6lӸyHi%ykX{r?>X1)kaB2 kXv=i%,_eGxY0F:lO#Y| %G^Ch&U 9y/!lƏ9 !S)` Mn'p)>k |V^6# ,|Uk&A4 9q̶`hnX#",裮l=WKq )Bedo,9$5UYQ85GkԇWŮD#5*fk([fE[1V. (=paF9VyAy3W] W8G;KPB2:ϥaBQs,aI#u$?5V:aLy5&oW u4hN^/%ǻ= 09ԓSg B_^43nQ%9i(/0Am<;;Ř`UTA(TΛqnE(Ά#r V`'Kj+ u7PhJGnb"[6I;"0hSذEB/W,$B931bљ^u~i? [Jxd{QxZ9SOBa\wJ\ؿCU7o ~~zm(s<ɘqg@\Y8[5oV.qmx/I$&6 Jgrq,:ȧos`ʾvW\TNR49aԽ)a0fn:?ʀ%;șb &-D"k"]J z(Zni0w{ߵdXCj"un.vvYbbրVF, 8tGH g>Ï˪0^0* >̿et ӕ5i:*Je3Бr?o ۉr`0O=P}S˫OdeJ&h5n4dAdFdvXXb'zXb+5oZ^2]10cTFϜbabSװ #ZgHxq`"8_e܂ZkVF^Z&mаz 6'z3;wA_hU-\ YB҂,bC֚s !M9s[Q{h]4QM & e\(c7ߡ4OaP:6ك`W7bGsUnrj Fk"Sn8'C'[0liI.ha:ֲS(/ݴ:U0굫:HaVwȔjak1YdYhϏ.EL6/‚"cJ\^O.3_ƚf6-/`Ͷ ,䌮 ҖUٔUv} P7l?D=nwMƨ\U2u " ^? sTKV~? znvDU'tA|0LW1x-w~ KXWybQcR'x_$yS qLRO/W̪.chGFiOkppXcQr {avs]yUw1Pg& JVZSZw4 #yRrg bJ^}2 d͇-cPye_qŮ<-ɥjM7$'٫VEM.C{bYtG=e#ʓY2\_G/1vvE͢]37৪3L/yzь& -Pw XN[=Q0pݢ3b9< ᎄ ZvR]G'foq u A:m8t鮑6ӥk*_ke'*uloB2聪.^,QSZ]9~bQfVĊ|^REt/8"ӈ)rSpH%*8}Q?[4/5'@R!گ(OTD, fE;ZiCM;VjH9!潇ȃrzV2)UA^?QmA*=UY`!GܲRJ4C\ӕ?_ct|sLW ck_ߴ/0^˪` Vؼ'v}4̭EthݶK#dشB[KW3D~N#67)3;H(dYxvz}F6S.lTLjh63/yX -,&\ϻG'@ U#gWrƻڰ3i?$#omu6 S7SɈz:&^n aή6xAP[[.:ޱ(I*@nbfL`?i R{XZ!@<%T1WxLJ%$U3/h7GcW'rbk{˽S^,?풦){"]D P$/Y#]68u= .^NgU/+oR S XD\!Az9`du@DsPyY{6WE)OK3BRgߵһ>뫐J#5衠* !LRpLGqKm ^WjD4lbEr?9Գk@56;|$,Lͳ9Hx>w:6gٔ" kÔta;]RhW y61Xv1 ` ]]nWfz襋s=:ytoH2YoӬQa 8}"0FzPXѭ#мӝo9u'%VPgMB: 4\LBlI=̥iL8 xGmX#ؤк~kX$hp o 9m{b2#NGǝ!D:nkXU1Bnv<|b:Ν J1'ZHpgefץRph#'U&hoT!m&Yw-d7Ggx%+#ڛnF='];Gm\qӽα}`ƏUb]nn;ktXxO N 3Tx0?,aqX81_Fథ> -L|ʻu% Zxծa]\%nO}]˒& EBg&ptg! L$a=Hd")مYMh*JHv.b,GLX/p'zS9~ċc_-C[{ŢOv~& r˥9$*nPc  ɏ:7"C9':d[6qaXFA J}BK٪kY\VN47֊- eP<2 DfRpFNv?]%UjF O8҆Qa *VA M>[?8
Enjoying the preview?
Page 1 of 1