William Baumol, Whose Famous Economic Theory Explains the Modern World, Has Died

Economist William Baumol had a famous idea, commonly known as Baumol’s cost disease, that explains a lot about our modern world. It explains why barbers make more in San Francisco than in Cleveland and why services such as health care and education keep getting more expensive. And it provides a possible explanation for why rich countries like America are devoting more and more of their … [ Read more ]

How Amazon Innovates in Ways that Google and Apple Can’t

Amazon has shown a remarkable ability to succeed in a wide variety of different product categories. That’s a contrast to most other high-profile tech companies that are really good in one area — Google’s dominant online services or Apple’s extraordinarily profitable hardware — but struggle when the quest for growth pushes them outside their zone of core competency. Amazon has figured out how to combine … [ Read more ]