source: https://www.cambridge.org/core/journals/business-and-politics/article/hidden-power-of-the-big-three-passive-index-funds-reconcentration-of-corporate-ownership-and-new-financial-risk/30AD689509AAD62F5B677E916C28C4B6

  • moujikman
    ·
    2 months ago

    Large companies can only exist if they receive monopoly rents. Otherwise incumbents would be outcompeted by challengers and we'd see a convergence of many small firms with low profit margins. So yeah, its the responsibility of the government to regulate monopolization and they aren't doing it.

    • Collatz_problem [comrade/them]
      ·
      2 months ago

      Economies of scale are a thing, so breaking up monopolies can easily result in low efficiency. Much better is to nationalize them.

      • moujikman
        ·
        2 months ago

        Yeah, it's a major consideration when determining if a merger should happen, e.g. Krogers. Just because its more efficient doesn't mean you get consumer benefit because you should expect them to profit maximize with monopoly rents. I mean definitely +1 on nationalize them rather than let capitalism go unfettered, but I'm making a general observation that large companies can only be large because they can extract monopoly rents, rather than just a barrier to entry to match efficiencies of scale thing.

    • ☆ Yσɠƚԋσʂ ☆@lemmygrad.ml
      ·
      2 months ago

      The government fundamentally represents the interests of the class that holds power though, and under capitalism it's the people who own the monopolies.