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Posted on: Oct. 8, 2018, 7:06 a.m.
The emergence of ‘superstar’ firms that achieve vastly better returns on invested capital have led to concern that some sectors are too concentrated. The column argues that this difference in returns can be accounted for by better measurement of intangible capital. These firms may not be exercising market power in ways that harm consumers in the short run, but policymakers should ensure that markets remain contestable. Full investment news articleRelevent to this post: The University of Chicago Office of Investments Louisiana Economic Development,