Alchian-Allen and Agglomeration: Explaining Economic Inequality and Nice Golf Courses in Vegas

Destined to be eaten thousands of miles from here.
  • Non-leading industries get priced out
  • The skill/comp cutoff within successful industries ratchets up
  • More marginal industries have to adapt — either find a way to be a proxy for the main industry[1], or build your business around having a high cost structure and commensurately higher revenue, but accept that your economics won’t be extraordinary.

--

--

--

I write about technology (more logos than techne) and economics. Newsletter: https://diff.substack.com/

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

The Quick and Dirty Case For Cutting 50bps at the June 2019 FOMC meeting

More Firms or No Firms: Monopoly and the Weak Leftism of the Democratic Party

ACT Research Freight Forecast: Freight Market Facing Shortages, Bottlenecks and Imbalances

In the wake of midterm elections, how should politicians evaluate future policy proposals?

The High Costs of Water Trading

Planning to buy your dream property? Don’t miss this

Fundamental Analysis VS Technical Analysis

How Bankers Made Billions From The 2008 Financial Crisis — And How They Could Do It Again

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Byrne Hobart

Byrne Hobart

I write about technology (more logos than techne) and economics. Newsletter: https://diff.substack.com/

More from Medium

Could a recession be good for America’s small businesses?

Snap Inc. -The Buffettology Workbook

There’s Only One Solution to Rising Gas Prices: Stay Home!

I bought Bharti Airtel a few days back at a P/E of 96. Here’s Why.