RE: "Government": Always a Bad Deal

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"Government": Always a Bad Deal

in anarchism •  8 years ago 

How exactly free market prevents monopolies? Hypothetically, if there are two competing companies doing the same thing, big enough to make smaller competitors remain insignificant, they can reach agreement to keep prices high (but not high enough for the small competition to be able to use it), forming "unofficial monopoly". What then?

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Small companies my not be able to compete head-to-head, but without government barriers to entry small companies still have options. They can operate on the margins, offering services and serving customers in ways that big companies are unable or unwilling to. They grow, slowly gain market share, and then are more able to compete. This isn't an overnight kinda thing. It takes time and diligence to build a success.