Quote:
Originally Posted by Ralph Sir Edward
In practice, government never stays out of the picture, as part of the excess profits (the purpose of a monopoly is to set prices at the maximum profit point, which cannot be reached in a truly competitive marketplace) is used to purchase favorable practices from government. It is immaterial whether it is a bribe, campaign contributions, or business to a company that the government member(s) have ties to.
You could even argue that patent, trademark, and copyright are government involvement in creating a monopoly, and should be abolished by free market economic theory...
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Well, the other part of that economic theory is to reduce the reach and power of the government. If you want a full explanation of the theory, then there are fair better sources than I. Bork wrote the definitive work on anti-trust and Sowell is a good source for the over all economic theory of limited government intervention and rent seeking (the practice that you describe).