INSEAD Tech Talk
Superstar Economy

From authors and movie stars to tech companies and investment banks, the modern economy is increasingly characterized by “superstar” economics; the tendency for a few of the most successful players to capture almost everything. This trend started in the 1980s and has lately come to dominate public discourse about income inequality and the powerful role of large companies. We will discuss a number of theories behind this trend and conclude that rapidly declining cost of communication and transportation are most likely the culprit. We will go on to discuss the wider implications of these trends and how or if policy should try to stop this trend.

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