Monday, August 13, 2018

US versus Europe – Competition and Pricing Power


You’re paying more in America than you would in Europe
NYU economists Germán Gutiérrez and Thomas Philippon note:
“…But starting around 2000, U.S. markets began to lose their competitive edge. Now, Internet access and monthly cellphone plans are much cheaper in Europe than in America, as are flights. Even in Mexico, mobile data plans are better priced than in the United States.
Deliberate policy choices explain these changes. European countries created the single market, which took effect in 1993, and deregulated their domestic markets. Today, most European Union countries score better than the United States in enacting policies that make industries more competitive.”