Attention Economy


Wednesday, April 12, 2017

Consumer Power in an Era of Declining Competition

This is not the world that Adam Smith envisaged –
Jacob Silverman’s thought-provoking piece in the Washington Post:
“We are told that this is the era of the empowered consumer: The savvy shopper has oodles of time to browse around, comparing prices among various retailers, perhaps consulting Yelp, Glassdoor or the Better Business Bureau. … Better information means more competition, which means lower prices — all features, of course, of an open marketplace ostensibly presided over by a regulatory authority that, while distant, exists to protect our safety.
This vision is a lie. Air travel is the most concentrated version of an essentially authoritarian experience that can be found throughout today’s economy. We live, work, shop, and travel under a system of grossly asymmetric power relationships, in which consumers sign away most of their rights just by purchasing a ticket and companies deputize themselves to enforce contracts with hired goons.”