As usual I didn't buy the book, but previewing it on Amazon it seems long on pontificating and short on references. There are a few numbers but the analysis goes like "Look at these numbers. Something is terribly wrong. It must be market failure!".
I subscribe more to the failed government theory, there is just nobody in any of these fields who cares about economic efficiency as they are too busy fighting to get campaign funding.
Re:The U.S. Only Pretends to Have Free Markets
by ZeroGravitas on Wednesday October 30, 2019 @06:19AM
(#21396107)
That's a strangely mixed review, and the same probably applies to your comment.
He seems to agree that regulations are preventing competition and should be removed, yet simultaneously argues that there's no evidence of companies output being affected and so we shouldn't have stronger anti-trust action.
It seems paradoxical to hold both these opinions at once.
Particularly if corporations are paying politicians to enact (or at least not repeal) those laws.
How can foreign airlines entering the market improve matters if the domestic airlines are already being directed by the invisible hand of the market to deliver the best service possible?
Re:The U.S. Only Pretends to Have Free Markets
by carlsborg on Wednesday October 30, 2019 @01:43AM
(#21394964)
That review mentions output restriction 15 times in total, the implied argument being that monopolies and cartels restrict output at some point of the demand curve and there is no output restriction these are not real monopolies.
Imho this is not a useful argument without also offering the marginal cost curve for that industry. Ie maybe for airlines technology driven efficiencies allows marginal revenue to exceed marginal cost at scale? From elsewhere “A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm should produce the extra unit.”
Re:The U.S. Only Pretends to Have Free Markets
by danzig13 on Wednesday October 30, 2019 @09:38AM
(#21397528)
>In some industries, licensing rules directly exclude new competitors; in other cases, regulations are complex enough that only the largest companies can afford to comply.
Not really a regulation but sales tax is a nightmare. We really need a consistent federal standard.
As usual I didn't buy the book, but previewing it on Amazon it seems long on pontificating and short on references. There are a few numbers but the analysis goes like "Look at these numbers. Something is terribly wrong. It must be market failure!".
I subscribe more to the failed government theory, there is just nobody in any of these fields who cares about economic efficiency as they are too busy fighting to get campaign funding.
He seems to agree that regulations are preventing competition and should be removed, yet simultaneously argues that there's no evidence of companies output being affected and so we shouldn't have stronger anti-trust action.
It seems paradoxical to hold both these opinions at once.
Particularly if corporations are paying politicians to enact (or at least not repeal) those laws.
How can foreign airlines entering the market improve matters if the domestic airlines are already being directed by the invisible hand of the market to deliver the best service possible?
-Everybody on the internet
Imho this is not a useful argument without also offering the marginal cost curve for that industry. Ie maybe for airlines technology driven efficiencies allows marginal revenue to exceed marginal cost at scale? From elsewhere “A monopolist can determine its profit-maximizing price and quantity by analyzing the marginal revenue and marginal costs of producing an extra unit. If the marginal revenue exceeds the marginal cost, then the firm should produce the extra unit.”
https://www.economist.com/special-report/2018/11/15/across-t...
https://www.economist.com/graphic-detail/2018/11/20/competit...
https://www.economist.com/leaders/2018/07/26/like-america-br...
https://www.economist.com/graphic-detail/2016/03/24/corporat...
Not really a regulation but sales tax is a nightmare. We really need a consistent federal standard.