happened well america the media cycle in the corporate powers and politics a recent paper by luigi zingales of the university of chicago titled towards a political theory of the firm deals with the issue of rent seeking behavior by monopolistic firms through political influence neoclassical theory assumes that firms have no power of feel any different from ordinary market can try. acting thus fortiori no power to influence the rules of the game rights and galleys in the real world firms have such power i argue that the more firms have market power the more they have the ability and the need to gain political power thus market concentration can easily lead to a mid vicious circle where money is used to get political power and political power is used to make money so you obviously see that across america now you see these giant corporations spend enormous amounts on lobbyist but they spend even more enormous power amount on funding campaigns funding super pacs citizens united the supreme court allowed for these corporations to spend unlimited amounts of money and why do they spend why are the

happened well america the media cycle in the corporate powers and politics a recent paper by luigi zingales of the university of chicago titled towards a political theory of the firm deals with the issue of rent seeking behavior by monopolistic firms through political influence neoclassical theory assumes that firms have no power of feel any different from ordinary market can try. acting thus fortiori no power to influence the rules of the game rights in galleys in the real world firms have such power i argue that the more firms have market power the more they have the ability and the need to gain political power thus market concentration can easily lead to a mid vicious circle where money is used to get political power and political power is used to make money so you obviously see that across america now you see these giant corporations spend enormous amounts on lobbyist but they spend even more enormous power amount on funding campaign funding super pacs citizens united the supreme court allowed for these corporations to spend unlimited amounts of money and why do they spend why are they

didn't participate in that but in terms of what's happening in america and how the process happens zingales and this is actually a piece from constantine there are also symmetric incentives for the firms to engage in rent seeking as in galley's notes if the ability to influence a political power increases with economic power so doesn't need to do so because the greater the market power a firm has the greater the fear of expiration by the political power this sounds extreme but it is quite intuitive as a firm gains market power its prices rise above the marginal cost yielding abnormal economic profits to the firm at the expense of consumers the governments can and do claim political mandate to limit these profits by taxing the market dominant firms profits either through regulation or direct taxation thus express in part of the abnormal returns i want to point out that you know trump is a business guy first and now he's president and you know you saw that tweet trump said. meijer drug companies to announce massive voluntary price decreases in two weeks this is part of that fear of these phar

luigi zingales of the university of chicago.commerzbank is going to be sticking around. is what you can punch and to pull out all the amazing charts. this is bloomberg. ♪ guy: welcome back. 53 minutes past the hour. tom keene in new york, guy johnson in london. to the currency world, but it is not ready for prime time. it may never be. ilk are 2 -- our too unstable and the subject to -- and subject to too much manipulation. galia benartzi of bancor network here to discuss this. the globalkind of central bank and it is throwing a lot of shade on the bitcoin world right now. galia: thank you for having me. this is such an ink -- interesting and exciting topic. fundamentally from a technology perspective, the underlying blockchain today cannot process the kind of volume that the central bank is processing. it is justified in that sense. these technologies are developing extremely rapidly. we see things like the bank or orquidity -- the banci liquidity network expanding. that is quite a big timeframe, so are we at the beginning

let's get back to david riley and luigi zingales. largely ignoring what looks like the g7 plus the u.s.. david: i am a little surprised myself. most of the time the g7 is a photo opportunity for leaders. occasionally it is important. i think what i found more worrying was not the split between the g six and the u.s. in terms of actual communique, which is plenty -- which is bland. trump issuedet where he seemed to threaten auto tariffs. that,ot want to overstate but i thought the tweet was more worrying than the other aspects. tom: that is a good observation. luigi, my tweet of the weekend was from the university of michigan. economist.e young he put up from the world bank the average tariffs rate charged byons. canada is at the bottom japan and short. everyone else is on equal terrain. paul krugman said the same thing this weekend. the fact is the tariffs of the g7 are not all that high, are they? luigi: they are not. -- goingt of the week back to trade -- tom: i did that for you. g-sevenrade within the is by and large free. it is t