On Nov 18, 2012, at 7:45 PM, Jim Devine <[email protected]> wrote: > me: >> steep fall in average profitability [in the US] > > Jamil: >> Is "average profitability" even relevant in a context where giant >> corporations operate on an entirely different echelon than the meager >> competitive sector, where profit rates are quite low? > > average profitability includes all non-financial corporations, whether > they are "giant" or not and whether they are in the so-called > competitive sector or not. The distinction between "giant" and > "competitive" isn't very strong, anyway: the rivalry between some of > the biggest "giants" -- thing Apple & Google -- can be quite intense.
I agree about Apple/Google/Microsoft but I don't think "rivalry" is the same as "competition," so it does not follow that rivalry leads to an equalization of profit rates. In other words, even if competition appears to be "intense," profit rates in oligopolistic vs. competitive sectors tend to be highly skewed in favor of oligopolistic sector. At least all of the the evidence I've seen supports this view. If you have contrary evidence, I'd be interested in seeing it. Regards, Jamil _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
