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Ability Quote by Janet Yellen

“An increase in shareholder value can arise for reasons other than greater efficiency, such as increased power and the resulting ability to increase profits by raising prices.” quote by Janet Yellen
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“An increase in shareholder value can arise for reasons other than greater efficiency, such as increased power and the resulting ability to increase profits by raising prices.”

Janet Yellen

About This Quote

Source Speech: Remarks at the Economic Club of New York, 2022

Shareholder value can grow from market power, not just efficiency, allowing firms to raise prices for higher profits

In simple terms: Companies can boost value by gaining power, not only by being more efficient

Key Takeaway

Watch for power‑driven profit strategies

Themes

economics corporate governance market power

Mood

cautious analytical

Type

critical informative

When to use this quote

  • Regulatory review
  • investment analysis
  • pricing strategy
  • antitrust policy

Key Concepts

Monopoly theory price setting shareholder theory

Questions to Reflect On

  • How do you distinguish value from exploitation?
  • What safeguards limit power‑based profit growth?
A Different Perspective

Power can harm competition and consumer welfare

2.2 out of 5 (3 ratings)

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