9 June 2020
When a crisis hits, as we are experiencing now with Covid-19, the economy goes into a tailspin, demand drops and firm profits plummet. Yet, not all industries and firms are affected in the same way. It is fairly straightforward to understand why the crisis-produced drop in demand will be much larger in some sectors of the economy than in others: if people are confined at home, air travel will drop to almost nothing, but video game sales may soar as a bored population seeks entertainment they can enjoy despite the lockdown.
Speaker: Pierre Dussauge, HEC Paris Professor of Strategy and Business Policy
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