If other people think like you, then won't they stop buying products from these predatory companies and support small businesses instead? And if they don't think like you, what's wrong with a monopoly?
I hate the current group of isps available locally, but that's what I've got. Since I value net access a lot, I'm willing to put up with paying for subpar service. IF there's only one game in town, and you value or need(water,electric utilities) the product, you've basically no choice.
As for monopolies, unless we happen upon a corporation with some moral, ethical and rational leadership, it is no good. Of course having the marketplace to itself could allow them to centralize R&D and probably reduce costs, while keeping quality high. But if they're not fit to have the market to themselves, they can grow complacent and reduce or eliminate R&D and reduce quality, raise prices and provide sub-par products.
Why would consumers agree to that?
Because a corporation is a far stronger entity than a mere human consumer. Their say is likely to be greater, in most any system, than even the many voices of many in a population. This is already so in many cases in many nations, that is why laws that go against fair use take root, and why copyright is continually extended. Most consumers probably don't want fair use to be effectively taken away or copyright to be extended indefinitely, but what they want matters little when the powerful choose otherwise.
World of Warcraft is a good example of how you can make money even in a world where software can be cracked in a matter of days (or hours).
WoW is still protected by IP laws, competitors can't create derivative or clone WoW hosting platforms. No one can commercialize an alternate platform running WoW.
There are also countries where price caps are not used. Why is there not just one big walmart?
In the past communication technology was not sufficient for even empires to spread too far. The roman empire was about at the limits, iirc from what I've heard. It's only been in the last few centuries when technology has progressed enough, and there's been continual progress on communication and manufacturing technology.
In this time frame corporations have grown and expanded into the global marketplace, some attaining virtual monopolies in multiple nations. In many markets corporations have gone from being many, to few, to little(oligopolies) or one(monopolies).
What I mean to say is that not enough time has passed for a corporation with a global monopoly that spans multiple areas to occur(as far as I know). As the power of corporations continue to grow, their ability to pressure fragmented governments into submission grows.
Already a corporation often has more protection against the law than the average citizen. Already many complain about the reality of corporations often having more say, than voters, in legislation through their lobbies and campaign contributions. As time goes on, the laws will likely continue to go more and more towards the side of the strong(corporations). Following the current trajectories it seems that if one were to extrapolate, were no impediment to occur, power will eventually transition in full from governments to multinational corporations.
These are almost always a result of government regulation, which favors big corporations over small businesses. The reason that nice lady next door can't compete against Walmart in selling cookies is not because she doesn't have the money for advertising, it's because it's a big fucking hassle getting through all the bureaucracy and regulations.
Are you suggesting that devoid regulation and bureaucracy she would be able to? A big chain can A.) Advertise hugely and paint her in a negative light B.)Provide substantially lower prices, C.) more variety, D.)higher availability of any particular product, E.) and additional services all in one place. Why do you think local small businesses often fight, tooth and nail, the right of big business to gain a local establishment? I believe it simply because they know they can't compete.
Further a big chain can learn of the suppliers of the small business, and extort them into stopping business with the smaller entity or raising their prices. It can offer suppliers large incentives for doing so or large penalties for refusing.
The difference between a dictator and a businessman is that a businessman can't force you to buy their product.
Business Entities that lie outside the law, like the Mob, can actually force you to buy what they're selling... their so-called protection.
Once corporations gain absolute power over the law, their ways will be the law of the land. And those who hold the law in the palm of their hands, their will is enforceable by force.
I think the scenario you're picturing here is not something that actually happens in the real world. If what you say is true, then there should only be one big Walmart that sells everything, and whenever a small company tries to compete, the almighty Walmart buys it. Yet this is not what we see -- even in countries where this would be legal.
I believe there's not been enough time with a modern economy and communications infrastructure for this to take place in those places where it's not happened yet.
But the big corporations squashing and killing all smaller ones has happened time and again. Even big competitors like AMD and APPLE have at times been practically at death's door at the hands of giants like MS and INTEL. Intel is suggested to've even extorted corporations out of buying AMD products, i think with incentives and threats, iirc(and at a time when AMD had a vastly superior product). Apple and AMD, iirc, were even given forms of life support to keep a competitor around and stop the obvious monopoly law problems that would ensue should these two disappear.
Even now NVIDIA's superior graphics technology is being hindered by INTEL's efforts in the low cost graphics arena.
The power of monopolies to influence decisions is seen by the fact that even open source free software has problems gaining a hold in many areas. That a high quality and sometimes superior FREE product has a problem gaining hold, is evidence of the massive power of many monopolies through marketing, incentives and penalties.
Right now for example the issue of software patents,
patentabsurdity(good free short documentary on the issue), is an area were the law is giving massive powers to corporations. The large corporations gaining patent portfolios that can be used to litigate into submission or oblivion any smaller corporation. Devoid of such patents, the larger corporations could very well steal any unique idea that might give a small corporation an edge, but at least there would be a fighting chance.
Edited by Cameron, 09 June 2010 - 03:11 PM.