U.S., EU Diverging on Market Concentration: NYU's Philippon

The video discusses the impacts of market concentration on equity shareholders and the average person, presenting both optimistic and pessimistic views. It highlights the lack of business investment and productivity gains despite the success of large firms. The video also compares market concentration in Europe and the USA, noting changes over time and differences in internet and airline industries.

What is the optimistic view regarding the concentration of successful firms in the market?

• They are better and thus dominate the market.

• They are less efficient than smaller firms.

• They are entrenched and earn rents.

• They contribute significantly to economic growth.

According to the pessimistic view, what is a major issue with successful firms?

• They are less profitable than smaller firms.

• They are entrenched and do not contribute much to economic growth.

• They invest heavily in new technologies.

• They create numerous job opportunities.

What is a missing link between efficient firms and economic growth?

• Reduction in market concentration.

• Government intervention in the market.

• Increased investment and hiring by these firms.

• High levels of market competition.

How did Europe address market concentration differently than the USA?

• By reducing the number of internet providers.

• By adopting the US's antitrust and market regulation strategies.

• By eliminating low-cost airlines.

• By increasing market concentration.

What is a notable difference between internet providers in France and the USA?

• French households have fewer choices than American ones.

• American households pay less for internet services.

• French households have more choices and pay less for internet services.

• There is no difference in the number of choices.