Your email address:

Powered by FeedBlitz


  • Accident Compensation

  • Save money when shopping online, visit Coupon croc for the latest discount codes and vouchers.

  • See blogs and businesses for USA

  • Southern Utah University

  • Search Now:
    In Association with
Blog powered by Typepad
Member since 02/2004

« Keynesian Time Inconsistency | Main | Hayek On Exhaustible Resources »


Kit Lloyd

Cool chart. It's interesting to look at some conglomerates, especially Proctor and Gamble, that have directly competing product lines and brands under the same umbrella. I'd be interested to know upper management's strategic thinking when they pit their own subsidiaries "against" each other (not saything that it can't be effective).

Kit Lloyd


Dave Tufte

Oh ... I think that's an easy one.

Suppose your firm creates a new product that is differentiable, and you get positive economic profits when you're the only producer. But competition will drive economic profits to zero with say 6 competitors. Well, there's no reason the original firm can't be one or more of those. If you don't (re)enter that market someone else will. And just because they end up making zero economic profits doesn't make them useless, or mean that they won't earn positive accounting profits.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)

Recent Reading

  • The Earthsea Cycle
  • From Archetype to Zeitgeist

Non-Economics Blogroll

Gone but not Forgotten


Movie Rating