Imploding Monopolies

(take 1)

How the free market destroys monopolies...

Category:

News & Politics

Tags:

• libertarian
• economics
• philosophy
• social
• policy
• objectivist
• freedom

[swiftysmithuk]

"Are there any good books for an introduction to economics?"

I know you asked this question quite a while ago, but if you are still interested...

Here's a link

Economics in One Lesson

By HENRY HAZLITT

Remove brackets and spaces:

tinyurl(.)com/EconomicsInOneLe­sson

[vspqbd]

@richyp11

"24 minutes and you don't mention asymmetrical information or PES!"

Given that no monopoly has ever been sustained without the help of government, those things weren't relevant.

[Laoch111]

The big monopoly would sell at a cheaper price to sell more therefore knocking out and preventing competition.

E.g. walmart vs the small corner shop.

Who locks up murderers and rapists in a stateless society?

As a side-note -- soymilk is much healthier than dairy milk.

[IMAGIMATIONanimation]

The best example of your substitute argument is Intel vs AMD. AMD sold cheaper processors back in the mid 2000s. Intel attempted to eliminate AMD by preventing AMD from even selling their products. AMD, according to you, should have survived by itself because it was undercutting intel through cheaper prices, but intel still almost killed AMD until governments found about about this "cabal" between vendors and Intel. AMD would have died without protection.

[IMAGIMATIONanimation]

You argue that substitutes may be created when demand still exists when a product is too expensive. What happens when that monopoly takes over the substitute market as well, or simply eliminates the substitute market by preventing that substitute vender from selling their products? While there is the potential for undercutting the competition, the monopoly is large, and can always adapt to overtake the substitute market. The monopoly still exists, and is more powerful.

[ParadoxPerspective]

[Evil Crony-capitalist conspirators' voice]

CURSES! ANOTHER INTELLECTUAL WITH A WHITEBOARD!

I HAVE BEEN FOILED AGAIIINNN!!

[DonVoghano]

This is so silly... 

[yuppyguitar1]

I get that for most goods and services, a monopoly is not possible. What prevents natural monopolies on goods and services that have a high barrier to entry, like water, electricity, and oil?

[kn1feonly]

@schmoborama Of course it is not air tight, but is any economic system? And I would actually agree with you that this guy is quite biased and doesn't make the best argument. If you want to hear the strongest argument for a completely free market I would suggest reading Rand.

[schmoborama]

@kn1feonly

it's not exactly air-tight, is it? our markets would have to be incredibly simple for such a simple idea to work, but they're incredibly complex. Either that, or you'd have to have no government whatsoever, and absolutely everyone behave honorably at the same time, for it to work.

The fact that he's obviously biased, and leaves things out, also makes me doubt his integrity.

[kn1feonly]

@schmoborama Why would it not work?

[schmoborama]

Interesting theory, but you don't actually expect this to work, right?