Evidence for claim #2? The sectors where the Baumol effect has been most painful (housing, childcare, education, with the exception of healthcare) are ones that have much higher levels of competition and distribution than areas where prices have rapidly dropped. Construction Physics, for example, did an analysis [1] that showed that the top multifamily housing developer has 2% marketshare; the top residential housing developer (DR Horton) has 8.4% and subs out almost all the work, and the top 4 together have only 20% of the market. Compare with tech markets like browsers, search engines, or operating systems where the top firm alone often has 80% market share.
[1] https://www.construction-physics.com/p/why-are-there-so-few-...