The concept I will illustrate through the lens of mesoeconomics for my two current events are competition. Mesoeconomics is the bridge between macro economics and microeconomics. The circular flow of the economy is influenced by mesoeconomics. Competitions for online banking customers are intense among top U.S. banks; because of increased unemployment, credit crisis and the overall poor health of the U.S. economy. Marc Trudeau states “Americans have less cash, are spending less and have experienced a significant decline in the value of their assets. There are shifts in the way consumers manage their finances online.” Less frequent visits to banking websites, has significant implications for banking marketers trying to reach new customers. Consumer spending is at its all time low with the poor health of the U.S. economy. However, Wal-Mart and Target are competing for consumers who spend less money, because both companies are serious about keeping prices low. In addition, Dollar General, Family Dollar and Radio Shack have reemerged their low prices to compete with Wal-Mart and Target stores. This strategy stops Wal-mart and Target from becoming a monopoly. Although low prices are important to both stores, changes in brand images are the indicator of which store has quality products for lower prices. Essentially, in my two current events, the consumers are a representation of microeconomics. The top U.S. banks, Target and Wal-Mart are representations of macroeconomics. Competition and monopolies represent the concepts of mesoeconomics that bridge the gap between microeconomics and macroeconomics. Ultimately, mesoeconomics influences the circular flow of the economy, due to the disaggregated entities that affect each others behavior. References
Farnham, P.G. (2010). Economics for managers (2nd ed.). New York: Prentice Hall.
Jones