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I think you have OP's comment the other way around. They were saying that markets will naturally tend to fewer than 3-5 competitors, and only prevented from get
by n4r9 1y ago
I think you have OP's comment the other way around. They were saying that markets will naturally tend to fewer than 3-5 competitors, and only prevented from getting there by antitrust.
- mike_hearn 1y agoI think I addressed both ways around: markets naturally tend to settle on 3-5 competitors, unless blocked by regulations. There are very few markets that are both natural monopolies and stay that way for long periods of time. Outside of things that tend to be owned by governments anyway, like road networks, I'm having a hard time thinking of any.
- n4r9 1y agoYou're right, I apologise for not reading your post carefully enough. Whilst pure monopolies are rare, my impression is that surprisingly many markets consolidate to an oligopoly, and that this reduces competition and is generally pretty bad for the consumer.