3 ms·
Isn't a completely free market likely to collapse onto one or two dominant suppliers who then prevent future competition by restrictive practices? I'd imagine
by keithpeter 12y ago
Isn't a completely free market likely to collapse onto one or two dominant suppliers who then prevent future competition by restrictive practices?
I'd imagine the use of time sensitive tariffs to bankrupt competitors. Sort of like Starbucks saturating a city centre district, bankrupting local independent cafes, then closing down the extra branches.
- nickff 12y ago>"Isn't a completely free market likely to collapse onto one or two dominant suppliers who then prevent future competition by restrictive practices?" I have never seen any evidence of this, though I would be interested in reading any material(s) you have supporting this position. The only successful long-term monopolies and oligopolies which keep prices high, or increase them, of which I can find examples are government-supported, either through regulation, subsidy, or protectionism. Some companies manage to keep their position at the top of a market without government support, by constantly lowering their prices, or improving their product offerings (i.e. Amazon AWS, and Google search), but I would hesitate to call these monopolies, because a new entrant could disrupt them at any time, and these companies do not appear to be 'exploiting' a guaranteed market.