Dominich Armentano's Antitrust And Monopoly: Anatomy of a Policy Failure PDF

By Dominich Armentano

ISBN-10: 0945999623

ISBN-13: 9780945999621

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Additional resources for Antitrust And Monopoly: Anatomy of a Policy Failure

Example text

But consumers do not regret the economies nor the consequent reduction in competition; why should critics? Consumers could increase competition any time they choose by indicating their willingness to pay higher prices to cover the higher costs of the smaller less efficient firms. That consumers do not usually do this indicates that resources are correctly allocated as far as they are concerned. Again, it is the vision of the purely competitive wonderland that is threatened by large, efficient firms, and not efficiency from a free-market per­ spective.

The first is that market price is determined by total market demand and total market supply. At the equilibrium price con­ sumers are purchasing (or are willing to purchase) some precise amount of market product— and no more. It would seem logical, therefore, to conclude that any increase in supply— if it is to be sold— must have some perceptible effect on market supply and market price. The effect may be “small” but there must be some effect in order to sell the additional output. It will not suffice to assert that an atomistic firm is so tiny that its output has no “appreciable” effect on the market.

49 W hat are “high” levels of concentration, how much of an increase in concentration is dangerous, and are the benchmarks the same for all markets? If concentration in a market stays the same over time, and yet the leading firms change position and shares of the market or are replaced by new firms, what conclusions are to be drawn from the struc­ tural information? How are the markets under discussion to be defined in the first place: are imports and used goods to be included in the concentration data, and are foreign and nonindustrial assets to be excluded from the calcu­ lations?

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Antitrust And Monopoly: Anatomy of a Policy Failure by Dominich Armentano

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