The free market is dependent upon the idea of free entry. Yet, is it not true that monopolies and oligopolies can arise in a free market and thus restrict free entry? Sorry, I'm not the most learned on the ideas of Austrian economics :P.
coda: The free market is dependent upon the idea of free entry. Yet, is it not true that monopolies and oligopolies can arise in a free market and thus restrict free entry? Sorry, I'm not the most learned on the ideas of Austrian economics :P.
I've never read of any monopoly/oligopoly naturally arising in a free market.
How do you define free entry and what can these oligopolies do to to restrict free entry?
Oligopolies and monopolies are the enemies of free markets. In my opinion there are only two ways to deal with them.
1- Rules of the game: Favor easy entry into the market and strong competition.
2-Govt restricting the amount of market share a company is allowed to have. I believe that in the long run, oligopolies will turn very inefficient.
Cesar: Oligopolies and monopolies are the enemies of free markets. In my opinion there are only two ways to deal with them. 1- Rules of the game: Favor easy entry into the market and strong competition. 2-Govt restricting the amount of market share a company is allowed to have. I believe that in the long run, oligopolies will turn very inefficient.
Government / state intervention is the enemy of free markets.
They create the artificial oligopolies and monopolies.
If a company / organization manages to obtain a significant market share within an industry and eventually thus obtain a monopoly, all this with free entry - they have done so because they have best met the needs of the market, i.e more efficient, effective - product, marketing, service etc...
Should they choose to raise their prices and take advantage of their monopoly... then they will allow the competition to enter the market, pricing lower than the monopoly, taking back market share etc...
Rules of the game...
- Let it be (Governments create the problems, not the solutions)
Without government help, mon/oligopolies cannot prevent competition. Government protects and assists the large get larger and the small ineffective to take market shares.