Power of Markets

Prompt:
Discuss three significant ideas or arguments that Whelan is making about markets.  Be specific and provide examples:

1.) Whelan argues that in the tech business, there are many competitors, however, it is the competitor that consumers go to the most that will continue to gain profit.  One example would be apple.  Since apple already sells to a large amount of people, people will continue to purchase from them due to the compatibility with other apple devices.  If you want to by a phone and you already have a mac, you will most likely look to purchase an iPhone due to the compatibility it shares with a mac.

2.)  Another argument that Whelan poses is that there are varying incentives for people in the world.  Most people want to graduate high school, go to college, and receive a degree.  However, that incentive may change if the right opportunities arrise.  Whelan uses LeBron James as his example.  LeBron went to high school in Akron, Ohio.  He had the choice to go to college and graduate, but before he even graduated, Nike had already chosen to sponsor him to a 100 million dollar deal.  LeBron had the incentive to get drafted to the Cleveland Cavaliers where he can make a huge profit.  In his first season, he was offered $15 million.

3.) Whelan argues that, in the entertainment business, a small margin of talent makes a huge difference in salary.  Likewise to LeBron having the incentive to enter the NBA, he was a bit more talented than the majority of basketball players.  Whelan says that all players are almost equally talented, but the ones who have some more skills are the ones who make it in the market.