The Profit Paradox: how thriving firms threaten the future of work

 
Location
A48 Clive Granger Building, Online - 365 Teams Meeting
Date(s)
02/12/2021
Registration URL
https://www.nottingham.ac.uk/economics/events-list/2021-22/the-profit-paradox.aspx
Description

623607-FeatureEventHeader-920x395-ProfitParadox-CMG-NOV21

The School of Economics at the University of Nottingham is delighted to present another public lecture.

Guest Speaker: Jan Eeckhout, Research Professor of Economics, Pompeu Fabra University, Barcelona

The event will be running both in person (with limited capacity) and online via MS Teams.

Please register at the link above to indicate how you would like to attend.

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 and severely limited social mobility.

A provocative investigation into how market power hurts average working people, The Profit Paradox also offers concrete solutions about how to fix the problem it and restore a healthy economy.