research Two (2) peer-reviewed articles that can be used to answer your upcoming assignment. Please read Chapters 13 & 14 and answer the two following questions: 1. During the early days of the In

Baye, M., & Prince, J. (2017). Managerial Economics & Business Strategy (9th ed.,). McGraw-Hill Education. Research Two (2) peer-reviewed articles that can be used to answer your
upcoming assignment.
Please read Chapters 13 & 14 and answer the two following questions:
1. During the early days of the Internet, most dot-coms were driven by revenues rather than
profits. A large number were even driven by “hits” to their site rather than revenues. This
all changed in early 2000, however, when the prices of unprofitable dot-com stocks
plummeted on Wall Street. Most analysts have attributed this to a return to rationality, with
investors focusing once again on fundamentals like earnings growth.
● Does this mean that, during the 1990s, dot-coms that focused on “hits” rather than
revenues or profits had bad business plans? Explain. (Chapter13- Problem 14)
2. During the dot-com era, mergers among some brokerage houses resulted in the acquiring
firm paying a premium on the order of $100 for each of the acquired firm’s customers.
● Is there a business rationale for such a strategy?
● Do you think these circumstances are met in the brokerage business? Explain.
(Chapter 13- Problem 17)