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. …
