| ▲ | Straw 2 hours ago | |
No, governments tend to produce monopolies. Can you find true monopolies in the free market, in the last 100 years, that have lasted for at least 20 years, without some kind of government backing/suppression of competitors? I only know of one. Things only count as monopolies if they have monopoly pricing power; Google is not a monopoly, they cannot even charge 1 cent per search. In practice, despite economies of scale, large companies age and become bloated, inflexible, etc. So there's typically plenty of room for new companies to compete. If a monopolist buys all upstarts, then that creates an even stronger incentive to make competing businesses! You don't even have to succeed in the market, you just have to get bought up! The more they buy out, there stronger incentive there will be to enter the market. No one can do this indefinitely- except with some kind of government support- say a regulation that makes it difficult to enter the market. | ||
| ▲ | cogman10 an hour ago | parent | next [-] | |
> Can you find true monopolies in the free market Your definition of monopoly isn't what people are commonly talking about when they say "monopoly". Granted, you have the correct definition, just not the colloquial one. What people say "monopoly" what they are really talking about is industries captured by few big players. For example, grocery stores. There's not a true monopoly there but there is damage done by the fact that there's very little competition in that space. Both to consumers and product manufacturers. These big grocery chains use their leverage to get prices smaller chains can't compete with. Further, they have been trying to consolidate (see Kroger Albertsons merger) to further exert anti-trust behaviors. A clear example of the damage done by this sort of hyper consolidation is what's happened to the memory market. Multiple times the 3 big players have been hit with anti-trust lawsuits because of the price fixing they've engaged in. It's true they are not true monopolies, but they exert exactly the problematic behavior of a true monopoly. It's very unlikely that the free market would ever fix this. | ||
| ▲ | vjvjvjvjghv an hour ago | parent | prev [-] | |
What you are describing sounds great in theory, but the real world doesn’t work like that. In more and more areas the obstacle to enter a market is not regulations but money. | ||