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Free markets can only exist in this way until they are much smaller than the whole economy. The moment they are the economy they are heavily prone to monopolisa
by heavenlyblue 6y ago
Free markets can only exist in this way until they are much smaller than the whole economy. The moment they are the economy they are heavily prone to monopolisation.
- nickpp 6y agoOn the contrary, the larger the market, the more the competition and thus the less danger of monopolization.
- TeMPOraL 6y agoWealth begets wealth. It compounds. The larger the market, the more space there is for a company to take the lead, put up barriers to entry, and focus on snuffing out any would-be competitors.
- nickpp 6y agoOnly governments can put barriers of entry into a free market, usually through regulations.
- TeMPOraL 6y agoNot true. See [0] for a list of examples, which contains several cases of barriers to entry that do not involve governments in any way (except as the entity that allows contracts to be enforced and the market to exist in the first place). -- [0] - https://en.wikipedia.org/wiki/Barriers_to_entry#Examples https://en.wikipedia.org/wiki/Barriers_to_entry#Examples
- nickpp 6y agoHalf of those examples need to be sustained by the government to actually act as barriers. And all of them ignore the creativity of the entrepreneurial mind when incentivized by the fabulous profits to be had in a monopolized market. A nice example: https://en.wikipedia.org/wiki/Herbert_Henry_Dow https://en.wikipedia.org/wiki/Herbert_Henry_Dow