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Competition without regulation ultimately leads to monopolies. Companies survive because they're better than other companies, and eventually they get big enough
by CN7R 10y ago
Competition without regulation ultimately leads to monopolies. Companies survive because they're better than other companies, and eventually they get big enough to just buy off or crush newer competitors. At this point, the monopoly will either have internal problems resulting in inefficiency, or an external regulator in the form of government.
What's wrong with my logic though?
- drieddust 10y agoYour logic is spot on.When a natural monopoly arises, it becomes essential regulate but sadly we are too much blinded by regulation free market that obvious is ignored. Even Adam Smith advocated regulations when its appropriate.
- dexterdog 10y agoWhat's wrong with your logic is that the 'competition' that we see in this world is so highly regulated already. When you get big enough you start writing the laws to protect your monopoly. Organizations like this can't handle competition from tiny technological disruptors because they are like trying to do a 180 in a loaded container ship. They can crush any competition with legal bills and pass that cost on to the customer.