Monday, January 30, 2023

Economics: Antitrust - Are Mergers Really So Bad?


 
(Drivebycuriosity) - It seems that the Biden administration hates mergers. Jonathan Kanter, leader of
the Antitrust Division of the Justice Department, started to sue companies who dare to buy other companies. Recently he won a lawsuit against the planned merger of the publishing houses Penguin Random House and Simon & Schuster. Likewise, Lina Khan, chair of the mighty Federal Trade Commission (FTC), wants to nullify Meta`s acquisition of Within, designers of the virtual reality fitness app Supernatural. The Khan has also sued to halt Microsoft`s purchase of Activision Blizzard, a video game company. Both powerful agencies started to fight any merger by a big company. But are mergers really so bad? 

A merger reduces the number of competitors. If 2 companies merge, who together are the sole providers of certain goods (or services), then they create a monopoly. That would be bad. Such a new monopolist could hike prices and/or reduce quality & services, at least as long as no other company offers similar products or services. But if there are 3 or more companies on this market then the situation would be different. Others would still be able to compete against the newly formed company. The rivalry could even become stronger because the merger would create a bigger and stronger company. A market with at least 3 big and strong competitors, along with lots of financial fire power, has more fierce competition than a market comprised of hundreds of small competitors having weaker finances (Kantzenbach ). Take for instance the aggressive competition between Walmart, Target and Amazon for e-shoppers or between Meta, Google, Microsoft & Amazon for advertisers. If Meta and Google - God forbid - would merge the competition could get even more intense because that new giant might attack her rivals Microsoft, Apple & Co with even more aggression.
 
 

None of the disputed mergers created (or would create) a monopoly. If the merger of Penguin Random House & Simon & Schuster would have gone through the company would still have to compete against myriads of other publishers. But the court did not care about competition at all. The judge dismissed the defenders` claim that the merger would reduce costs (raising efficiency) and therefore lead to lower prices and benefit book buyers. Instead the judge agreed with complainant Kanter`s claim that the merger might reduce the income of some bestseller writers like Stephen King - ignoring millions of book purchasers who might have benefited from lower book prices ( twitter).

If Microsoft would overtake Activision Blizzard the merged company would just become the world’s number three gaming company by revenue, behind Tencent and Sony ( cnbc). The video game industry is massive and very, very competitive, writes Reason magazine (reason ). Competition in the gaming market could even get stronger because Microsoft/Activision together could challenge the market leaders even more. But the Khan, who is not educated as economist and never had a real job, does not care. She belongs to the Neo-Brandesians, a left-leaning group who see private enterprise as bad and want to put the US economy under government control, according to Khan´s colleague and fellow FTC commissioner Christine Wilson (ftc.gov ). 

Khan`s FTC current attack on Meta is based on the claim that the purchase of tiny Within would illegally boost Meta’s market power in the nascent virtual reality industry and constrain competition in the future. Can the Khan predict the future? How can the Khan know how the virtual reality will develop? Did News Corp. owner Rubert Murdoch`s purchase of the social network MySpace discourage Zuckerberg? Did the Khan notice that there are already some very serious competitors including ByteDance, Google, Apple and Sony? Apparently the Khan ignores that the number of competitors in the virtual reality market is growing fast. The Khan has already made it clear that she dislikes big companies in general and fights them whatever this may cost the taxpayers ( fee.org  inc.com).
 

Even if Kanter & Kahn don´t win their lawsuits they impose high costs on any merger - and their investigations & law suits delay any merger which will add additional costs. So these powerful agencies - with huge budgets (financed with tax payer money) and no cost control - might discourage the boards of the implied companies. They might give up on potential mergers and acquisitions because they fear they will be forced to waste time and money defending themselves against nuisance lawsuits ( realclearmarket).

Mergers make sense because they save costs (efficiency gains). When for instance 2 bakeries in a neighborhood merge they will need just one baking oven and can cede one of their existing ovens and also some baking machines. A merger leads to a bigger company which could create economies of scale, meaning lower average costs by a better utilization of capacities and overhead.  Such economies of scale lead to lower costs and prices - beneficial for consumers and the whole economy. 

But Kanter & Khan, both powerful bureaucrats whom nobody elected (both chosen by Biden), do not care about economics, efficiency, cost savings, consumers & the economy. Both hate mergers because they create a bigger company. Both - and their fellow Neo-Brandeisians - declare big as bad, except it means big government (drivebycuriosity ).



Saturday, January 28, 2023

Contemporary Art: Future Presidents @ Fortnight Institute New York


 (Drivebycuriosity) - Contemporary art is full of discoveries. On a recent walk through the East Village I spotted a gallery which was unknown to me: Fortnight Institute (fortnight ). They displayed the amazing paintings by Amy Hill, the show was called: "Future Presidents". Apparently Hill was influenced by Renaissance artists like Sandro Botticelli, but also by Columbian painter Fernando Botero.

 


On top of this post you can see "Family Breakfast"  followed by "Girl in a Revolving Door".

 

 
 



Above follow "Two Women on their Phones" ; "Young Woman in Outdoor Elevator" & "Tea"

 


 


 

Above you can see "Shopper"; "Messenger" & "Young Woman with Strange Object"

All paintings are from 2022, oil on canvas.


To be continued 

Friday, January 27, 2023

Books: The Heavenly Table By Donald Ray Pollock


 (Drivebycuriosity) - Donald Ray Pollock belongs to the stars of contemporary American literature. I enjoyed the movie adaption of his novel "The Devil All The Time". This drew my attention to Pollock`s book "The Heavenly Table" (amazon ). 

The plot is set in and around US state Ohio in the year 1916, when the US entered the war against Germany. Pollock has a simple message: Being dirt poor and very dump begets criminality which begets disaster. The plot follows mainly three brothers who in the begin live on the edge of existence. Poverty & stupidity dictates their behavior and their ways cross soon the paths of similar characters with dramatic consequences (this is a spoiler free blog).

Pollock created a freak show. Most of the characters are extremely poor, borderline dump and often exceptionally sadist & violent. Their interaction is beyond bad taste. Pollock`s language is exceptionally crude and often hyper gross. Apparently all the misfortune & cruelty is meant to be entertaining - and as the rave reviews show this strategy works with a certain kind of people.

It seems that Pollock made fun of everything, being poor, being stupid, being violent, being sadist, being obnoxious, being queer. This might be entertaining for a while but its wearing out soon, getting tedious. If Heavenly Table belongs to the best of American literature I will seek further reading abroad.

Thursday, January 26, 2023

Contemporary Art: Navigating The Abyss @ Marc Straus New York

 

 



(Drivebycuriosity) - Marc Straus gallery on Manhattan´s Grand Street, the unofficially border between the Lower East Side and Chinatown, belongs to the best galleries in this neighborhood. I haven often seen amazing exhibitions there.

 



Recently I reported about the wonderful Ulf Puder exhibition ( driveby). The gallery had simultaneously another show: Renée Stout: Navigating the Abyss (marcstraus). On top of this post you can see the name giving "Navigating the Abyss" (2022, Acrylic on wood panel). Above this paragraph follows "Escape Plan D (with Hi John Root, Connecting the Dots)" (2022, Acrylic paint, colored pencil, and graphite on wood panel).

 


 



 




To be continued

Tuesday, January 24, 2023

Literature: 20 Interesting Books I Read In 2022


 (Drivebycuriosity) - 2022 did not end Covid-19 but multiple vaccinations allowed me to travel again and to  visit rock concerts, museums and art galleries. But there was still a lot of time to read and fortunately I discovered some interesting books. Here a my favorites:


"Metazoa" by Peter Godfrey-Smith was the book of the year for me. The author focuses on the question how consciousness evolved in animals. Humans inherited many items, like eyes and neurons, from common ancestors. Godfrey-Smith calls animals our cousins who "can teach us much about the evolutionary origins of not only our bodies, but also our minds." The book is based on the author`s own research & ideas, who regularly dived on the shore of Australia, but also on general knowledge from fossils enhanced with musings by other scientists and philosophers. Even animals like sponges, crabs, sharks and others seem to have some consciousness because they respond to their environment and they react to the behavior of their fellows, prey ( food) and enemies (predators). The behavior of all life forms gives valuable clues how our consciousness might have evolved ( amazon).

 

I was stunned by the novel "The Anomaly" by French author Hervé Le Tellier. This piece of speculative fiction narrates a very freakish incident which changed radically not only the lives of many people it also caused a global upheaval. The novel is partly a thriller with scifi elements (but not really based on science) enhanced with psychology, religion, philosophy & metaphysical ideas. Lots of fun (amazon ).

 

Jan Swafford`s monumental biography "Mozart " describes over about 800 pages painstakingly Mozart`s life & his struggles with employers, competitors and his fragile health. The book also dives into the history of Austria and neighboring Germany, which was then a patchwork of independent countries. Swafford describes the political, economical & sociological environment and the powers which influenced Mozart and his music and - being himself a composer - elaborates and explains the genius` operas, symphonies, chamber works, concertos & other pieces of music (amazon).  

 

"The Florintines: From Dante to Galileo. The Transformation of Western Civilization" by Paul Strathern not only describes Florence´s struggles, rises & falls, the author also narrates why & how the Italian Renaissance evolved and how the famous Florentines influenced history. The book follows the lives of people who had lived and worked in Florence and had not only shaped the development of this place, but also the history of economy & culture and so the spread of the Italian Renaissance and the advance of Western culture. The book is lively written, full with anecdotes, and reads almost like a novel ( amazon).


"The Money Game" by George Goodman, published under the name Adam Smith (originally published 1968), describes entertaining & humorously the philosophies and psychological mindsets of stock market investors & speculators, the players, and their strategies & tactics. The author also narrates the scientific theories how the stock market functions and if the market is efficient or not, spiced with a lot of amusing anecdotes. I reckon that the "Money Game" is still the best book on financial markets and a good introduction into microeconomics. Goodman spiced his works with lot of quotes by philosophers, economists, investors & gamblers. I learned many things, for instance that there is no "Wisdom of the Masses". Instead the market often proves David Mackay´s book "Extraordinary Popular Delusions and the Madness of Crowds" (published 1841!), describing herding behavior and bubbles, panics & crashes ( amazon) . 

 

Ayn Rand`s  novel "Fountainhead" (first published 1943) is still important. It seems that Rand described today´s Woke sentiment and the world of Elizabeth Warren, Bernie Sanders & the Biden administration ( amazon).


"The Professor And The Madman" about the making of the gargantuan Oxford English Dictionary by Simon Winchester, melted the about 70 years lasting development of the monstrous publication with the biographies of 2 men: James Murray, the creator, organizer and main editor of the OED, the "Professor", and the American W. C. Minor, one of his most important supporting writers, the "Madman". The book is written like a novel. Winchester tells how Murray mastered his gargantuan task, how the "mad man" became the "mad man" and how creating the OED shaped their different lives. "The Professor and .." touches a great variety of topics: linguistics, book printing, organization, American civil war, mental illness, murder and many more. I learned a lot reading this book and I had fun as well (amazon ). 

 

I like sushi & sashimi. "Oishii: The History of Sushi" by Eric C. Rath describes how the preparation of these delicacies evolved in China & Japan and the chemistry which makes uncooked fish edible ( amazon).


"The Antitrust Religion" by Edwin S. Rockefeller, published in 2007, gives a sharp, analytical and sometimes humorous overview of America´s antitrust history and describes "how blind faith in antitrust has led to confusing and arbitrary enforcement". Rockefeller calls antitrust "a religious faith" and "an intuitive mix of law, economics, and politics; a mystical collection of aspirations, beliefs, suspicions, presumptions, and predictions" ( amazon). 


"Tamburlaine must Die", by Louise Welsh tells the last - very dark - days of Christopher Marlow who was a poet, playwright and colleague of Shakespeare. He became popular with his play "Tamburlaine", wrote an early version of "Faust" and other pieces. Marlow might have become as famous as his competitor, but his life ended early under unknown circumstances.We learn about Marlow`s relationship with his patron Lord Walsingham, Queen Elizabeth`spymaster, his friends & foes, his ambitions and a lot about his fears. Welsh wrote in a poetic style inspired by Marlow`s writings and created a menacing atmosphere. Even the very explicit and elaborately described sex scenes read like poems. The novel is a travel back into very sinister and dangerous times ( amazon).


Martin Cruz Smith`s novel "Havana Bay", set in Cuba, covers post cold war politics, conspiracies and the beauty, but also the decay of Havana. Cruz Smith mixes the fragile relationship between Cuba & Russia after the fall of the Soviet Union, Voodoo & African cults, prostitution, espionage, tropical fishing and many more items into a intoxicating and delicious tropical cocktail. The novel starts with grizzly details, lovingly served, followed by lots of thrilling violent action scenes & surprises, set in a lush exotic environment mixed with steamy sex and funny episodes. I indulged into Smith`s elaborately designed action scenes, his cynical humor, political insights and descriptions of Havana`s tropical charm. A masterpiece (amazon ).

 

Lawrence Osborne`s novel "On Java Road" is mostly set in contemporary Hong Kong, told in first person by a tabloid journalist, an expat from England. The narrator is friend to a crazy rich Asian playboy. Both are somewhat related with a young woman, born into a very wealthy local family. The woman had become a radical activist and a leader in the violent protests against the takeover by the Communist Chinese government. The novel reminds me bit of Every Waugh´s  "Brideshead Revisited". I enjoyed Osborne´s elegant & analytical style. He has the talent to create a very dense atmosphere and transport his readers to almost mystical places. His descriptions of Hong Kong`s culture, geography, architecture, weather and people - spiced with a bit philosophy - are pure pleasure to read ( amazon).


 "The Rabbit Factor" by Antti Tuomainen, told in first person and set in Finland, is about a man who`s world is set upside down and has to adapt to a totally new life. The protagonist, who himself is a very rational analytical thinker, is suddenly confrotned with irrationality, menace & violence. But the novel is also about learning and to grow with one`s challenges. "What doesn`t kill us, will make us stronger", said Nietsche. The book deals also with issues like economics, management & labor relations. The "Rabbit Factor is spiced with a very black humor and hilarious ideas. There are elaborately described action & steamy explicit sex scenes and there is some romance. "The Rabbit Factor" is a very optimist & positive book - and entertaining as well ( amazon).

 

The novel "Broken Summer" by Korean bestseller author J. M. Lee circles around a murder case, it jumps back and forth in time and changes sometimes the protagonist. The style reminds me a bit of young adult books, especially Brothers Grimm`s gritty fairy tales, but there are a lot adult issues like murder, alcoholism, deceit, domestic abuse, coming of age, revenge, dysfunctional families and more. I love how the author described the artistic development of the main protagonist; how he advanced as an artist, how he learned painting techniques and how he found his own very special style. I also like the description of the protagonist´s creations and the portrayal of the economics & politics of the art market ( amazon).

  

 


 As usual I read a lot science fiction:


James L. Cambias novel "A Darkling Sea" is set on a fictional moon of a distant planet. This moon is - like Jupiter`s moon Europa - covered by a some miles deep ocean under a deep layer of ice. On the ground are - like on the bottom of  earth`s oceans -  volcanic springs, called vents which feed warm water, sulfur and chemicals into the ocean. These vents allowed the evolution of an intelligent life form, who settles around these springs on the bottom of the ocean. The plot follows three groups: The natives of the moon, huge lobster like intelligent beings, who are living on the ocean ground; humans who have a submarine station near the ocean bottom and explore the behavior of the natives; and space faring highly developed aliens, who distrustful observe the humans. There area lot of conflicts which lead to dramatic consequences. Parts of the book are like classic space adventures and space operas, humorous & thrilling. But Cambias also dives deep into the evolution, sociology, psychology & economy of the natives and the complex relations between humans and the more technological advanced aliens (amazon ).

 

Alastair Reynolds` novel` Eversion" is told in first person and begins in the early 19th century. The protagonist works as a surgeon on a fifth class ship traveling north along the coast of Norway. But there are many radical changes. In the begin the novel reads like written by Jack London but turns into cutting edge hard science fiction with elements of horror, as typical for Reynold`s tales. And the ending is a marvel. I enjoyed how the plot developed, a elaborate mixture of classical adventure story and space opera with lots of philosophical musings & a shot of romance (amazon ).

 

Gregory Benford´s novel "Shadows of Eternity", is set on the moon, some centuries in the future. The humans had received, collected & researched myriads of messages from alien cultures, many light years away and maybe are already extinct. The exterrestrial messages are collected in a huge SETI library on the moon. The plot follows Rachel, a young aspiring librarian @ SETI, who is tasked to analyze some of the alien messages. What will she discover? The alien messages are advanced software programs, a kind of artificial intelligence. These programs are aware of themselves and see themselves as the servants of their senders and they are able to communicate with librarians like Rachel. Benford spiced his novel with a lot of science and interwove cosmology, evolution, biology & sociology into an interesting plot, a melange of space opera and exotic adventure tale ( amazon).

 

 Cixin Liu`s anthology "To Hold up the Sky" collects 11 short stories. The compilation shows the bandwidth of his talents & interests, but also his writing skills. The stories - most are written decades ago - are mostly hard science fiction, based on physics, cosmology and other sciences. The stories also "have a strong Chinese flavor, imbued with the culture, history, and present reality of China". Cixin Liu tried to imagine "the direct, tangible relationship between people and the universe". "To hold up" is cutting edge science fiction, entertaining with a lot of food for thoughts ( amazon).

 

The novel "Machinehood" by S.B. Divya is set around the year 2090. Most jobs are done by AIs and other machines and humans take advanced drugs and get micro-machines (pills) implanted to be able to compete with the superior machines. The complex plot has interesting & plausible ideas about the future labor market, how corporations & social networks might have developed and how humans and robots could cooperate & compete. The novel shows strong philosophical tendencies and Buddhist influences. I also enjoyed the frequently mentioning of cooking & Asian food. Apparently the author, who holds degrees in computational neuroscience and signal processing, is also a cook & and a foodie ( amazon).

 

Stanislaw Lem`s novel "The Invincible", first published in the year 1964, follows the crew of space cruiser "The Invincibel" who lands on a remote planet to find out what happened with a similar space ship which got lost on this planet. The plot begins like a traditional scifi adventure and space opera but the plot turns fast into a complex and philosophical work, typical for Lem. The reader gets a lot of action, technology, cosmology,  & alien settings. But Lem gives the reader much more. He presents an almost academic description of evolution, but not the evolution we know on earth which lead to plants, animals & humans. Lem describes a very different - but equally plausible - development.

What the book makes outstanding is the pivotal role of information (or data) for the plot. This book made me aware how important information is for our live and almost everything. Lem also introduced nanotechnology into the genre. The Invincible shows how visionary Lem really was, maybe even more than Heinlein, Clark & Asimov ( amazon).

 

 

Monday, January 23, 2023

Contemporary Art: Figurative Paintings @ The Hole New York

 



 
(Drivebycuriosity) - Some galleries have funny names. "The Hole" on Manhattan`s popular entertainment mile Bowery (312 Bowery, New York  theholenyc) seems to specialize in experimental art. They have frequently interesting shows. Recently I saw there an exhibition with paintings by Greek artist Vassilis H.

 


 


The press release says: "Drawing inspiration from magazines, fanzines, films and photographs from the seventies and eighties, Vassilis paints men and women in configurations suggesting themes of lust and aggression, often isolating them against plain backgrounds with chromatic auras" ( theholenyc).
 


To be continued

Sunday, January 22, 2023

Contemporary Art: Ania Hobson @ Morgan Presents New York

 

 (Drivebycuriosity) - Manhattan`s Lower East Side is slowly degenerating into a party district with a legion of fast food places & other dives. But there could be still some fine art discovered. Morgan Presents, an exhibition space on Suffolk street, belongs to the stalwarts of culture, worth a visit. The place is founded and directed by Morgan Aguiar-Lucander ( about).

 


Last week I saw there a show with works by Ania Hobson (b. 1990, Suffolk, UK), who lives and works in London and Suffolk, United Kingdom. According to the press release "Hobson’s work is concerned with the tension between her subject’s internal life and their existence in a populated space" (morgan ). 

 

 
 

 



 

Anyway I like the images.

 


Above this paragraph follows a work by Barbara Kruger, which I like as well. 


To be continued
 


Saturday, January 21, 2023

Photography: Chiang Mai @ Night

  


(Drivebycuriosity) -  Recently I stayed some days and nights in Chiang Mai. The northern Thai metropolis is a wonderful place. There were so many occasions for taking pictures.





I present here some nightly images.

 



Above a tuk-tuk (3-wheeled mini taxi) before the ancient city wall.

 

 


 

A nightly market




One of the ubiquitous Wats (Buddhist temple).

 


 Some funny street art

 


A canal in moonlight

 


aren`t they cool?

 


A fancy restaurant

 



Last but not least: A huge Tamarind tree

 

To be continued