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But how to "Fragment the market legally"? Breakups lead to more monopolies [1]. Could the tax code be manipulated to achieve the desired effect? A market share

But how to "Fragment the market legally"? Breakups lead to more monopolies [1]. Could the tax code be manipulated to achieve the desired effect? A market share tax could tax revenue of large corporations (revenue >= $1B [2]) on products and services that are over X% market share at Y%. With X=40% and Y=80%, then: $4.2B revenue with 40% market share has $0 market share tax and keeps $4.2B; $5B revenue with 50% market share has $800M market share tax and keeps $4.2B; $7B revenue with 80% market share has $2.8B market share tax and keeps $4.2B; This would reduce the incentive to grow market share above the threshold. A 40% threshold allows for two companies to max out market share and a 30% threshold allows for three companies to max out market share. [1] https://en.wikipedia.org/wiki/Breakup_of_the_Bell_System https://en.wikipedia.org/wiki/Breakup_of_the_Bell_System [2] https://www.gartner.com/it-glossary/smbs-small-and-midsize-businesses/ https://www.gartner.com/it-glossary/smbs-small-and-midsize-b...

ryacko 8y ago
After a breakup, require the companies to not merge for decades? Have a theory on corporate organization for cases of industries where there is heavy capital investment to enter, but low marginal cost. A cooperative style organization where regional sellers can freely enter or join, but cannot do business with each other. The cooperative would own in the case of telecommunications the backbone, and the research labs (if research is needed that the regional companies cannot afford themselves). So that it won’t be a franchised monopoly, the cooperative doesn’t have patent or trade secret rights, it can’t sue competitors out of existence. Influenced by mutualism. Market share tax just results in companies redefining their industry.
- king07828 8y ago
  > Market share tax just results in companies redefining their industry. Do you have a specific example?

ryacko 8y ago

After a breakup, require the companies to not merge for decades? Have a theory on corporate organization for cases of industries where there is heavy capital investment to enter, but low marginal cost. A cooperative style organization where regional sellers can freely enter or join, but cannot do business with each other. The cooperative would own in the case of telecommunications the backbone, and the research labs (if research is needed that the regional companies cannot afford themselves). So that it won’t be a franchised monopoly, the cooperative doesn’t have patent or trade secret rights, it can’t sue competitors out of existence. Influenced by mutualism. Market share tax just results in companies redefining their industry.

king07828 8y ago
> Market share tax just results in companies redefining their industry. Do you have a specific example?