|
Fatfingers: "Or they collude to preserve profits and minimise expensive innovation and competition and form monopolistic positions and grow big enough to never fear dying." Presumably you mean collude and move to an oligopoly position. I can't see how collusion can lead to monopoly (it takes at least 2 to collude but a monopoly can only be 1). Still, either way, there is a natural advantage in most industries for small agile challengers to large bureacratic monopolies. Monopolies (like the old Telstra) and oligopolies (like the two airline system) usually only exist while governments protect them from competition. But such companies get fat and lazy and either shape up fast, or crumble when competition is finally allowed in. Recall the dramatic improvement in Telstra when the government allowed even a tiny bit of competition, from Optus.
| 
