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Megan McArdle

Megan McArdle - Megan McArdle is a senior editor for The Atlantic who writes about business and economics. She has worked at three start-ups, a consulting firm, an investment bank, a disaster recovery firm at Ground Zero, and The Economist. She is currently on leave.
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Megan was born and raised on the Upper West Side of Manhattan, and yes, she does enjoy her lattes, as well as the occasional extra-dry skim-milk cappuccino. Her checkered work history includes three start-ups, four years as a technology project manager for a boutique consulting firm, a summer as an associate at an investment bank, and a year spent as sort of an executive copy girl for one of the disaster-recovery firms at Ground Zero � all before the age of 30.

While working at Ground Zero, Megan started Live From the WTC, a blog focused on economics, business, and cooking. She may or may not have been the first major economics blogger, depending on whether we are allowed to throw outlying variables such as Brad Delong out of the set. From there it was but a few steps down the slippery slope to freelance journalism. She has worked in various capacities for The Economist, where she wrote about economics and oversaw the founding of Free Exchange, the magazine's economics blog. She has also maintained her own blog, Asymmetrical Information, which moved to The Atlantic, along with its owner, in August 2007.

Megan holds a bachelor's degree in English literature from the University of Pennsylvania and an M.B.A. from the University of Chicago. After a lifetime as a New Yorker, she now resides in northwest Washington, D.C., where she is still trying to figure out what one does with an apartment larger than 400 square feet.

Is Apple Paving the Way for Oligopoly?

By Megan McArdle
Feb 8 2010, 5:52 PM ET Comment

Commenter Bosco Higgins offers an astute possibility as to why Apple might be signalling that they're willing to cut prices, even though this will just encourage consumers to wait:

If I had to guess I would say it is a pricing signal to its competitors (Kindle, Nook, Sony) saying that if they try to compete on price, Apple is prepared to willing to drop iPad prices. It is the old prisoner's delimma on pricing - Apple is trying to establish a cartel price and scare the other participants from defecting.

It's not a bad guess. Oligopolies can be maintained for quite some time with the right signaling games.  On the other hand, I'm not sure how credible a signal they can send.  Apple may eventually make most of its money from content, but right now it's a vendor of shiny hardware, which it sells at a hefty premium.  Amazon doesn't need to command a premium price in order to protect a brand image; they're a discounter, and that's why people like them.  If Apple starts getting into price wars, it's heading into uncharted and dangerous lands.


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