Skip to main content



Warren buffett takes $4 billion stake in JP Morgan

https://www.cnn.com/2018/11/14/investing/warren-buffett-jpmorgan/index.html

Warren Buffett is a very well known business man with many investments and special interests in a multitude of different companies. He recently invested a hefty $4 billion in JP Morgan, a high profile bank. This will lead to higher profits from both parties, even as the returns for most big banks have been a dismal this year. This is due to global trade tensions between many superpowers across the world, specifically China and the US.

What this has to do with networks you may ask? Well, as high profile banks prosper, their stock prices rise and transform into extremely valuable stocks with great yields. This subsequently results in high demand for the specific stocks of these companies, like JP Morgan. This will cause a change in most users reservation prices for JP Morgan stocks. A change in reservation price results in different equilibrium values for the good. Therefore, the network effect for JP Morgan stocks will be altered and what you will probably end up with is a larger Nash equilibrium. 

 

 

 

Comments

Leave a Reply

Blogging Calendar

November 2018
M T W T F S S
« Oct   Dec »
 1234
567891011
12131415161718
19202122232425
2627282930  

Archives