Re:Amazon’s New Competitive Advantage: Putting Its Own Produ...
by User23 on Monday June 08, 2020 @07:50PM
(#23462104)
> It's a great business model, like a hedge fund running an exchange with no separation of information. It would be illegal the financial sector.
Maybe I'm misunderstanding, but wasn't Glass–Steagall repealed?
A lot of people don't realize, but hedge funds are the small fry. I mean sure a few hundred million or even a billion or two dollars sounds like a lot of money, but once you realize how much the Fed is pumping through the primary dealers it's literally pocket change. It's outfits like Goldman or BlackRock that are playing heads I win tails you lose.
Re:Amazon’s New Competitive Advantage: Putting Its Own Produ...
by JumpCrisscross on Monday June 08, 2020 @11:16PM
(#23463300)
> wasn't Glass–Steagall repealed?
Glass-Steagall banned federally-insured banks from competing with investment banks. Information walls, which have to do with insider trading, are a separate beast.
Re:Amazon’s New Competitive Advantage: Putting Its Own Produ...
by robertlagrant on Monday June 08, 2020 @05:18PM
(#23460925)
I hadn't thought of it like that. But is it any different than if they paid for analysts to provide them that info?
Amazon has much better visibility on sales, margins, user behaviour than their market sellers. Where risk is high they allow sellers to take the risk, where it is low they enter directly and take more margin.
It's a great business model, like a hedge fund running an exchange with no separation of information. It would be illegal the financial sector.