I don't know Miko, these are not my pet theories, just my beliefs based upon looking at a variety of well-established viewpoints over an entirely hands-off approach to business, one that encompasses some basic regulatory antitrust controls, and an overly burdensome regulatory environment. I read what the economists say, look at examples in the various industries I'm familiar with and with my personal experiences as a consumer and come to a position.
Here are two fairly comprehensive looks at antitrust activities pro/con (
Anti Trust). I side more with the rebuttal.
First, without antitrust deterrence, there will be more cartels. Deciding to form a cartel involves the calculation of prospective costs and benefits. Sans antitrust, the primary cost to cartelization will be the coordination costs (since there will be no financial penalties to pay, or incarceration to endure, if caught). The major economic hindrances to cartelization will be the free rider problem, cheating by members, and fending off prospective new entrants. Second, without antitrust deterrence of cartels, consumers who perceive themselves as aggrieved by the absence of competition would turn to politicians who might respond with burdensome government regulations on business. Antitrust, in principle, sets the rules of the game, but not the outcome. Absent antitrust enforcement, the regulations politicians substitute might directly involve the government in price and output determination that would be more obstructive than antitrust’s more limited restrictions upon freedom of contracting. Tucker never mentions the economic advantages consumers now enjoy because of deregulation that came about because antitrust was offered as a substitute for direct government regulation of price and entry.
When a monopoly, duality or a larger cartel environment is allowed to develop you find a shift away from direct competition and more a focus on dividing markets and setting prices (often informally through wink, wink, nudge, nudge type of "legal" arrangements). Quality products, quality employees and customer service become less important because there is no real need to compete in general. Just look at the Visa/MasterCard duality and the recent anti-trust and retailer lawsuits.
Charon
