On 4/24/2014 8:38 PM, Larry Sheldon wrote:
On 4/24/2014 10:23 PM, Patrick W. Gilmore wrote:
The invisible hand of the market cannot fix problems when there is a
monopoly.
Put in economic terms, a player with Market Power is extracting Rents.
(Capitalization is intentional.)
Regulating monopolies allows a market to work, not the opposite.
Regulating monopolies protects monopolies from competition.
Monopolies can not persist without regulation.
A regulated monopoly is a monopoly, with all of the powers granted to
monopolies by regulation.
"In theory, there is no difference between theory and practice.
In practice, there is." --- Yogi Berra
Due to the existence of Regulatory Capture, Mr. Gilmore has a point.
