Borders examines government’s role in dealing with monopolies

The latest edition of Max Borders‘ Ideas Matter update features an item focusing on the links between government and monopoly power.

Lynn Kiesling explains why the competitive process — with the lure of big margins — is far better than government interfering in the marketplace to break up a monopoly. Breaking up a monopoly can undermine innovation, Kiesling argues. Where competitors see an inpenetrable wall, innovators see opportunity. But when it comes right down to it, lasting monopolies aren’t created by monopolists alone. …