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4. Markets aren't actually efficient because they are stacked in favor of incumbents through their ability to lobby for anti-competitive legislation, as can be
by philipov 9y ago
4. Markets aren't actually efficient because they are stacked in favor of incumbents through their ability to lobby for anti-competitive legislation, as can be seen with the perversion of the copyright and patent systems.
- mulmen 9y agoThe mistake you made in this example is attributing an action in the legislative system as a failure in the market.
- philipov 9y agoI am saying the opposite: the market becomes less efficient as a result of legislative capture. But it is a feedback loop, so attributing the dynamics to simple cause and effect is not appropriate.
- Spooky23 9y agoMarkets aren’t going to deliver best value to anyone without being forced to. Eventually, every company wants to own the market, and convincing government to do so is a key part of that strategy. The invisible hand sometimes is holding a visible club.