Intangible assets can lead to market power and higher profits from "summary" of Capitalism without Capital by Jonathan Haskel,Stian Westlake
Intangible assets, such as brands, software, and design, are becoming increasingly important in today's economy. These assets are not physical in nature but have value due to their ability to generate future benefits. One key advantage of intangible assets is their potential to create market power for firms. A strong brand, for example, can differentiate a company's products from competitors and allow it to charge higher prices. Market power, in turn, can lead to higher profits for companies with valuable intangible assets. By being able to set prices above marginal cost, firms can capture a larger share of the value they create for customers. This can result in greater profitability and a stronger competitive position in the market. In industries where intangible assets play a significant role, companies with strong brands, patents, or proprietary technology often outperform thos...
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