tag:blogger.com,1999:blog-3829599.post115023929867407870..comments2024-01-28T00:20:40.933-08:00Comments on Agoraphilia: Booze and Hisses for Monopoly PowerUnknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-3829599.post-1150312269097731822006-06-14T12:11:00.000-07:002006-06-14T12:11:00.000-07:00Colin -- yes, that would be the usual analysis. L...Colin -- yes, that would be the usual analysis. Less competition can sometimes be good because larger firms can exploit economies of scale, but if so, that will happen on its own without gov't assistance. So getting rid of regulations that encourage monopoly should, in general, create more wealth by eliminating underproduction.<BR/><BR/>However, when negative externalities are present, that will tend to create overproduction, which reduces wealth. So the underproduction caused by monopoly and the overproduction caused by externalities could (partially) offset each other. That is the kernel of truth behind the argument I'm arguing against in the post.Glen Whitmanhttps://www.blogger.com/profile/01425907466575991113noreply@blogger.com