February 13, 2019

Tech Companies are Hiring a Lot of Economists

In an article published in Harvard Business Review (HBR) dated February 12, 2019, titled "Why Tech Companies Hire So Many Economists", Susan Athley and Michael Luca pointed out the importance of economics and the role of economist in tech business. In the article, they highlighted that large US tech companies like Amazon, Google, Facebook, and Microsoft have large team of PHD economists. 

So why are economists so valuable in these tech organizations? The growth of tech economists in the past years has help tech industry answer some of the most important issues in the market. Questions related to pricing, like, how will the market respond if we make the app free or what if we charge a little amount will they still download the app? Or what market should we focus, will tech products sell on this market or that market? With the data of tech companies and the toolkits of economists, questions like these would be readily answered. 

If you are an economics students, you would probably remember the times when you took your thesis and running series of statistical test to test relationships of variables. This experience on testing and studying relationships (accepting or rejecting the hypothesis whether there is significant relationship or not) is a valuable expertise in tech sector. When an economist is asked about a problem, he does not jump into conclusion and giving answers without basis, instead he uses data and economics statistical test to figure out possible answers to the problem. In simple words, economists know how to use numbers in answering complex real world problem.

HBR article link: Why Tech Companies Hire So Many Economists

No comments:

Post a Comment

Subscribe to Philippine Economist via Email