This time can not say that the Nobel Prize (with the Riksbank as a sponsor) in economics goes to some effort with questionable relevance to the world outside the ivory towers. It is stressed already in the grounds where Frenchman Jean Tirole called “one of today’s most influential economists,” because he is such a key thinker behind modern market regulation and competition policy.
His spirit hovers on burning issues. Should Europe’s telecom operators be allowed to get as big and as the American? What are the prices and profits the owners should the owners of the local electricity network monopolies to take out? And those who insist on profit-hunting company in the welfare sector can be made to serve higher purposes can fetch arguments of this year’s winners.
Jean Tirole ascribed pioneering work in a field that solidified in the simplified models. The need for more nuanced analysis and sophisticated tools emerged in interaction with the political pendulum swung towards privatization and deregulation.
And it is probably a sign of the times that Tirole rewarded in a position of greater reflection and skepticism around liberalization (especially in the financial industry), and then further steps in that direction rather renamed to “re-regulation”.
At yesterday’s press conference (winner participated via link) Tirole advocated a “strong state” to bring such an intelligent policy that does not entrepreneurship is beaten to death.
That he is for a moving, nuanced and dynamic view was evident when Commenting on Google’s alleged disruptive behavior, a red-hot issue as soon lands in the lap of Denmark’s new EU Commissioner Margrethe Vestager.
He stressed the major consumer benefit that the search led and believed that incidental monopoly profits always arise, and can be accepted as a result of technological breakthroughs and innovative business models. He has been interested in the digital economy features, where already the frequent offer of free services is challenging a sight that often sees “price dumping” as a sign of a market in illegally.
The leftists who perhaps triggered by pressing the message header of the art of “taming the mighty company” may be disappointed by the more they learn about a fundamentally pro-capitalist message. Tirole is no Piketty.
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