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Free markets need management to continue existing at all. When one gets to a monopoly or oligopoly, it's not a market anymore, so isn't counted. Monopoly is the

by ncmncm 4y ago

Free markets need management to continue existing at all. When one gets to a monopoly or oligopoly, it's not a market anymore, so isn't counted. Monopoly is the natural end state of an unregulated market.

WalterBright 4y ago
Name a monopoly in the US not put in place by the government. Historical or contemporary.
- Retric 4y ago
  Standard Oil, plenty of others like Microsoft are more arguable but standard oil simply out competed and then bought up the competition.
  - WalterBright 4y ago
    Standard Oil never was a monopoly, and never was convicted of being a monopoly. It was convicted of restraint of trade. SO never had a market share that exceeded 90%. Throughout the years-long anti-trust trial, SO's market share declined, as competitors had learned how to compete with SO. During the height of SO, the consumer price of kerosene dropped 70%. There is no evidence SO harmed consumers or charged monopoly prices. As for Microsoft, they never had more than 90% share, there were always alternatives consumers could buy (Linux and Apple), and their market share has slipped quite a bit since the Justice Dept took no action against them. There's no evidence Microsoft charged monopoly prices - they charged with giving away free copies of their browser! They still give it away for free. Nobody ever demonstrated any harm to consumers from Microsoft.
    - Retric 4y ago
      Monopoly isn’t defined as having a market share over 90%, or any specific percentage. Standard oil was the massively dominant player which controlled enough of the oil supply to be able to set the market price because the competition had insufficient capacity to make up the difference and there was a lack of an equivalent substitute good(s). That’s the economic definition of a monopoly. As to being convinced, it isn’t illegal to become a monopoly.
      - WalterBright 4y ago
        Again, SO was never convicted of having a monopoly. SO's market share declined before the anti-trust trial got underway, and steadily declined throughout the trial. > set the market price Again, the "market price" declined by 70% under SO's alleged monopoly.
        ncmncm 4y ago
        Having a monopoly is not a crime, so nothing you can be convicted of. It was broken up because it was a monopoly.
        Retric 4y ago
        The case wasn’t about having monopoly power, the laws states: “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.” Don’t constrain trade and it’s perfectly legal to become a monopoly. Not being a monopoly is a defense but so is not constraining commerce.

by ncmncm 4y ago

WalterBright 4y ago

Name a monopoly in the US not put in place by the government. Historical or contemporary.

Retric 4y ago
Standard Oil, plenty of others like Microsoft are more arguable but standard oil simply out competed and then bought up the competition.
- WalterBright 4y ago
  Standard Oil never was a monopoly, and never was convicted of being a monopoly. It was convicted of restraint of trade. SO never had a market share that exceeded 90%. Throughout the years-long anti-trust trial, SO's market share declined, as competitors had learned how to compete with SO. During the height of SO, the consumer price of kerosene dropped 70%. There is no evidence SO harmed consumers or charged monopoly prices. As for Microsoft, they never had more than 90% share, there were always alternatives consumers could buy (Linux and Apple), and their market share has slipped quite a bit since the Justice Dept took no action against them. There's no evidence Microsoft charged monopoly prices - they charged with giving away free copies of their browser! They still give it away for free. Nobody ever demonstrated any harm to consumers from Microsoft.
  - Retric 4y ago
    Monopoly isn’t defined as having a market share over 90%, or any specific percentage. Standard oil was the massively dominant player which controlled enough of the oil supply to be able to set the market price because the competition had insufficient capacity to make up the difference and there was a lack of an equivalent substitute good(s). That’s the economic definition of a monopoly. As to being convinced, it isn’t illegal to become a monopoly.
    - WalterBright 4y ago
      Again, SO was never convicted of having a monopoly. SO's market share declined before the anti-trust trial got underway, and steadily declined throughout the trial. > set the market price Again, the "market price" declined by 70% under SO's alleged monopoly.
      - ncmncm 4y ago
        Having a monopoly is not a crime, so nothing you can be convicted of. It was broken up because it was a monopoly.
      - Retric 4y ago
        The case wasn’t about having monopoly power, the laws states: “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.” Don’t constrain trade and it’s perfectly legal to become a monopoly. Not being a monopoly is a defense but so is not constraining commerce.