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There's a really good Planet Money podcast on this topic. Did you know that pre-1980s, antitrust law was used _very_ liberally? There were many documented case
by arshbot 7y ago
There's a really good Planet Money podcast on this topic.
Did you know that pre-1980s, antitrust law was used _very_ liberally? There were many documented cases of the book being thrown at tiny companies looking to merge - the book that changed everyone's mind ( The Antitrust Paradox ) lists examples such as a merger between local groceries being denied as one of many great examples of antitrust law getting in the way of healthy competition instead of promoting it.
It seems that for most of the 10th century, antitrust law usage was on one side of the bar being used far too much, and as a reaction it's far too much on the other side - seldom used to the point where most industries are dominated by one or two giants.
It's just bad luck this transition seemed to have happened during a boom period of new industries and extreme growth.
- xurias 7y ago> examples such as a merger between local groceries being denied as one of many great examples of antitrust law getting in the way of healthy competition instead of promoting it. Maybe I need to read the book but I don't see it. Consolidation of supermarkets has clearly reduced competition in the US. A small handful of companies have cornered the market because the US government stopped using antitrust laws liberally. I'm not sure what popularity has to do at all with economic issues.
- losvedir 7y agoGroceries are like the pinnacle example of capitalism and competition working well. Everyone loves grocery stores, and we have a wonderful product selection for very cheap prices! I don't know if we have just "a small handful of companies" or not, but it certainly doesn't work as a compelling example for me of an anti-trust problem.
- xurias 7y agoEverybody loves Amazon, doesn't mean they aren't horribly monopolistic and don't have widespread economic/social impact on certain classes of people.
- LanceH 7y agoWhat exactly does Amazon have a monopoly on? They are big and the easiest and most obvious to use and their prices are frequently good, but none of those are exclusively Amazon.
- ambicapter 7y ago> very cheap prices Citation needed on this one. Not my experience at all.
- fuzz4lyfe 7y ago20 pounds of rice, $8.48. [0](Just the first price I found online) At four servings per pound that is 80 servings at $0.106 each. Average yield of a rice plant, 10 grams.[1] 9071.85 grams of rice is 907 plants roughly. That's less than a cent to cultivate, grow, prepare, bag and ship a rice plant. Let alone maintain the store where it is sold and pay the workers who sell it to you. This is the miracle of the free market. What price do you suggest is more fair? [0]https://www.walmart.com/ip/Great-Value-Long-Grain-Enriched-Rice-20-lb/10315883 https://www.walmart.com/ip/Great-Value-Long-Grain-Enriched-R... [1]https://www.quora.com/How-much-rice-does-1-plant-yield https://www.quora.com/How-much-rice-does-1-plant-yield
- JetSpiegel 7y agoDoes this include agricultural subsidies and environmental externalities? Does the shop uses below cost rice as loss leader?
- caseysoftware 7y ago> Maybe I need to read the book but I don't see it. Yes, that would be the point of reading the book. You can't argue with the reasoning if you don't know it.
- yhoneycomb 7y agoJust wanted to insertt myself into this convo to say you’re a dick and you make hacker news worse.
- deleted 7y ago[deleted]