Why do you say that is a way of internalizing externalities? I see nothing there that would internalize them. It may be a way of reducing negative externaliti

Why do you say that is a way of internalizing externalities? I see nothing there that would internalize them. It may be a way of reducing negative externalities, but via a method other than internalizing them (namely, reducing competitive pressure). Actually internalizing said externalities would seem to me to be the superior approach, as that would get you less of the negative externalities and more of the positive ones, whereas reducing competitive pressure would probably just get you less of both indiscriminately. Edit: Oh, nevermind, I think I see now where you're coming from -- it internalizes externalities because it's all one big owner. Duh. Somehow didn't notice that at first. That said, I think the problems of lack of competitive pressure are real, and it would better to internalize externalities in a more direct fashion that doesn't cause the problems that turning down competitive pressure would.