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phpisthebest | 2 years ago
I disagree, and history has shown that free markets absent government control doe not instantly become monopolized, and infact through out most of history monopolize form when the government regulates the most
Look at todays market as an example, the most competition is present in markets where the government has the least influence, where markets like energy, healthcare, etc which are the most regulated are also the most monopolized
mjburgess|2 years ago
Neutrally, using the term "anarchical market", i'd say that these markets are empheral. Everyone them has to act against rules which are not in their self-interest, it's highly unclear why a subgroup of market participants wouldnt immediately collectivise and outcompete everyone else.
Collectivisation is human's superpower, and the obvious an immediate thing basically everyone does (hence: mafia, warlords, cartels, etc.). It would be remarkable to see this anarchical market of yours remain free for very long, so I'd gladly hear of one case.
The main mechanism against collectivisation is that some biggest baddest collective decides to prohibit it (hence the state). There may be others, but I can think of none that would operate under anarchical conditions.
tremon|2 years ago
The Hanseatic League. This was basically its own trade association across North Europe, based on maritime trade. It had considerable market/economic power, but no legislative power; most participants were city-states so they were self-reliant to a degree, but none of them had jurisdiction or power over the entire group.
mcv|2 years ago
Of course it matters what kind of regulation; it's also possible to regulate markets in a way that protects monopolies, and some governments do that. So it's important to have a government that understands the importance of a free market.
To give you some examples, the Dutch markets for health insurance and energy are entirely privatised but heavily regulated, and quite competitive. It's easy to switch from one provider to another, and so they compete hard on price. Although perhaps more so in the early days after privatisation than more recently.
On the other hand, the market for software is not very regulated, it's heavily monopolised. Sometimes the EU makes moves to increase competition, but that's only piecemeal and not always terribly effective; Microsoft still rules the desktop, except in those areas where Apple now rules it.
ludwigDual|2 years ago
Monopolization requires control of land or resources. This is because any cartel's attempt to set artificially high prices can be undercut by new entrants to the market who aren't in the cartel.
> On the other hand, the market for software is not very regulated, it's heavily monopolised.
Software is monopolized primarily through regulated monopolies on software (re)production i.e. copyright.