Gary Reback is one of those attorneys who understands his subject very well. Unfortunately, since he isn't an economist, and shows no evidence of having studied, it doesn't MATTER how well he understands antitrust. You can always tell someone who is ignorant of the operation of markets when they say "self-policing" in reference to how companies behave when not regulated by legislation.
First, understand that free markets are not without regulation. The participants in the market regulate the behavior of other participants, by their choice of who to cooperate with and who to spurn. But secondly, corporations never Never NEVER NEVER self-police. Never. Ever. Not on a good day, not on a bad day. That's not how free markets work. Somebody who understands how they work would NEVER use that phrase. Corporations regulate the behavior of other corporations. They're all greedy sons-of-bitches, and they wouldn't hesitate to cut their mother's throat, OR their own prices in order to gain market share.
Consequently, the only way for a company to persistently[1] dominate their market is with assistance of the government. You know. The same government that Gary Reback wants to have the power to regulate markets.
Yeah. That's why this article is entitled "Dimbulb". That would be Gary.
[1] I would note that Pedipaws is currently dominating the market for pet claw grinders. That's okay, they created the market, they should be allowed to own it, for a while. The only way to dominate a market is by creating a new product that nobody else has, by getting a government monopoly (e.g. a patent), or by constantly offering a better deal than anyone else. That's how Standard Oil got and kept its monopoly -- by constantly improving its process and driving the price of a barrel of oil into the ground.
posted at: 04:00 | path: /economics | permanent link to this entry