Monopoly and Competition

Once the economics profession embraced the "perfect" competition theory which, as Hayek has said, means "the absence of all competitive activities," it also embraced antitrust regulation. 

We're now hearing many calls for more antitrust legislation applied to Big Tech because these firms are allegedly monopolies. But old-fashioned antitrust was a disaster, as will be new efforts against tech companies.

We're now hearing many calls for more antitrust legislation applied to Big Tech because these firms are allegedly monopolies. But old-fashioned antitrust was a disaster, as will be new efforts against tech companies. 

It's conservatives, not libertarians, who are naïve about big media power. 

As more people get censored or removed from the platform, more prominent voices seek out alternatives that are in the more early stages and don’t censor as heavily. Fragmentation starts to make the service less useful and interesting rather than being a source of affirmation and good feelings.

Recently Tim Poole alluded to the so-called “shopping cart theory” of why self-governance is impossible. Bob explains what’s wrong with this argument.

Why don't corporations just get bigger and bigger until they take over the whole economy? Unlike states, firms aren't necessarily better off as they get bigger.

Why don't corporations just get bigger and bigger until they take over the whole economy? Unlike states, firms aren't necessarily better off as they get bigger.

Social media has lied about user privacy and has misled the public about the platforms' status as open forums. But none of this makes these companies monopolies.

What's a telltale sign of economic illiteracy? I'm starting to believe the worst is the claim that markets lead to monopoly and the accumulation of wealth in a few hands.