3 ms·
Having 5 companies that actually compete for business wouldn’t harm consumers. Having 5 companies that avoid competition would, and that’s called a cartel and i
by AmericanChopper 4y ago
Having 5 companies that actually compete for business wouldn’t harm consumers. Having 5 companies that avoid competition would, and that’s called a cartel and it’s already illegal according to the anti-trust laws (the Sherman and Clayton Acts).
- J3klin 4y agoOligopoly is only marginally better than monopoly.
- dathinab 4y agoA cartel is illegal yes, but proving a cartel is dam hard. And depending on jurisdiction requires proving that the companies actually had some "agreement"/"communication" wrt. their non-competing (as far as I remember). But if you look at markets all around the world having situations with the same harmful dynamics as cartels but for legalities not counting as cartels is not uncommon.