Thread by @matthewstoller

I’ve never seen such anger from economists as I have since we started presenting the argument market power and inflation are related. They are really triggered, like someone stepped on their turf.

It's possible that during shortages monopoly power is magnified because it's harder to substitute away from any particular bottleneck. A crisis can create more pricing power. Example: food delivery apps had more power when restaurants had to shut down regular service.

"Just stop. Seriously." - A. Goolsbee, Chicago

Here are some fun angry quotes from economists disputing the relationship between monopoly and inflation. igmchicago.org/surveys/inflat…

What was funny is that Nobel prize winners Angus Deaton, Abhijit Banerjee, and Bengt Holmström were the outliers among economists in that they do think market power drives some inflation.

https://twitter.com/sarahmillerdc/status/1481437189670162437?s=21

The only realistic comment from an economist was from the most corrupt one on the list, Richard Schmalensee.

"Threats might have some slight effect in a few places."

Investigations do tend to focus CEOs on price reductions.

I'll repost my article: "What is the Point of Economics?" mattstoller.substack.com/p/what-is-the-…

"Thurman Arnold’s antitrust cases produced quick results not only because he used criminal indictments to secure quick industrywide consent decrees but also because merely launching an investigation dropped prices by 18–33% in various industries.”

promarket.org/2016/07/01/hor…