Is the government really looking out for consumers by stopping monopolies, or is it just looking out for corporate profits?
In this episode, we talk about the high-stakes antitrust fight over one of the biggest media mergers in U.S. history. There is a very intriguing microeconomic chess game going on behind the scenes of the court case. It involves supply-chain leverage, two-sided markets, and the cord-cutting threshold, which is the highest price that consumers will pay.
We look at why federal and state regulators don't agree on the threat at all, how higher wholesale prices are passed on to retail customers, and why big telecom companies are scared of a smaller profit pie.
Topics Covered:
The Pass-Through Rate: How a broadcaster's increase in wholesale prices mathematically makes a cable company raise your monthly bill.
The Margin Squeeze: What happens when retail prices reach the "cord-cutting threshold" and distributors have to pay for the costs of their suppliers?
For a full article and graphic examination of this case, click this link:
