While controversial, payment for order flow (PFOF) is far more cost-effective for Robinhood's core user base making small trades. A $1,000 trade might incur 200 basis points in old commission costs versus just 1-2 basis points under PFOF. This model makes investing accessible for smaller accounts that would be penalized by flat fees.

CEO Doug McMillan's decision to raise worker pay by 90% was key to Walmart's resurgence. This investment in people lowered turnover, improved service, and attracted new customers, ultimately quadrupling the stock price and proving a vital strategy against competitors like Amazon.

Tesla's price cuts are not just a reaction to competition. They reflect the 'scaled economies shared' model, where cost savings from increased scale and vertical integration are passed to customers. This drives more volume, which in turn enhances the scale advantage in a virtuous, recursive cycle.

The decision to offer zero-commission trades was not an incremental price reduction; it was a fundamental shift in the business model. The team intuitively recognized that "free" possesses a unique marketing power far stronger than a nominal fee. This is key for any company aiming for mass-market disruption.

Pricing power allows a brand to raise prices without losing customers, effectively fighting the economic principle that demand falls as price rises. This is achieved by creating a brand perception so strong that consumers believe there is no viable substitute.

The most important market shift isn't passive investing; it's the rise of retail traders using low-cost platforms and short-term options. This creates powerful feedback loops as market makers hedge their positions, leading to massive, fundamentals-defying stock swings of 20% or more in a single day.

Costco's business model is unique: it aims to break even on merchandise sales. This allows it to offer the lowest possible prices, building immense customer loyalty. The company's entire operating profit is derived from its annual membership fees, which represent only 2% of total revenue.

CME Group's CEO uses the analogy of Sears being disrupted by Amazon to explain the strategic imperative for embracing retail trading. The fear of becoming obsolete by failing to adapt to new market participants and technologies is a primary motivator for legacy exchanges to partner with modern platforms like FanDuel.

Prediction market platforms are promoting their products as 'CFTC-approved,' but this is misleading. They use a self-certification process where the CFTC has 24 hours to object. A lack of objection is not an endorsement, a critical distinction that CME's CEO argues is not being disclosed to retail users.