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> "Do those markets lack adequate competition?" Yes, they certainly do. All of the markets you listed could do with stronger competition. As for banks, I also
by ZenoArrow 11y ago
> "Do those markets lack adequate competition?"
Yes, they certainly do. All of the markets you listed could do with stronger competition.
As for banks, I also think they could do with stronger competition. We should never have any company which is 'too big to fail'.
- rayiner 11y agoWhat makes you think competitive markets keep entities from becoming "too big to fail?" There are enormous economies of scale in nearly any business. There is a reason there are just a handful of companies left capable of gabbing their own chips. Same with say Amazon and Wal-Mart. The market equilibrium in any moderately capital-intensive industry favors just a handful of huge competitors.
- ZenoArrow 11y ago> "The market equilibrium in any moderately capital-intensive industry favors just a handful of huge competitors." That's why it's necessary to occasionally clip their wings. Even if capitalism left unchecked results in large concentration of power, the role that government plays in regulating these markets is to enable (or at least, should be 'to enable') new competitors to emerge that can compete with established players, in order to maintain healthy levels of competition.