Making Walmart Nervous

What do Wal-mart, car dealers, and newspapers all have in common?

They're afraid of Google.

I read an interesting Times article this morning about how internet searches give consumers increased price information while requiring less effort, increasing the real competition that businesses like Wal-mart face. (If you don't already have a NY Times sign-in, you can use "aktimesreader" with password "akreader.")

Car dealers? Same thing; consumers are better prepared with information. They can read all about their cars of interest online, often comparing prices or evening finding an online dealer.

And newspapers? Online ads are proving to be highly effective, which reduces companies' incentive to pay for printed ads.

In the end, consumers win. Reducing the cost of information should increase efficiency and productivity (and lower costs), though not before wreaking some havoc in the process, as businesses and workers scramble to adjust.