The Problem With Modern Monopoly Theory – It’s About Monopsony

Noah Smith treats us to an overview of modern thinking – for which read progressives who just are darned well going to do something about large companies – on monopoly and antitrust. They’re beginning to come at this sideways, to insist that dominant companies are dominant in labour markets, therefore let’s break up Amazon and Facebook right now. There is a certain error to this argument. That error being that dominance in one market does not mean dominance in another.…

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