Originally Posted by neverfoldthe1outer
1. Today, the U.S. government prevents Walmart from waging war against Target (or buying them out) to create a monopoly. They do this through the U.S. Army, various other police forces, and anti-trust laws.
2. In ACland, the could be Trillionaires (instead of mere billionaires) if no competition existed.
the idea that capitalists would have this mentality that they could become so much wealthier, and even trillionares!, if they could just beat people over the head with a stick to buy their products is a misunderstanding of how economies work.
I think the idea of the invisible hand, is still applicable to AC society. Why should walmart beat you on the head with a stick to purchase a $20 t shirt if they could avoid that overhead and have you voluntarily walk in their store and pay $15. I dont even see what kind of logistics you have in mind where a person would be completely cut off from purchasing a t shirt at a lower price, because somehow walmart has intimidated the living **** out of all t shirt vendors in the world.
How could a company become so large that it would start to consider gaining monopoly power in the market via hostile takeover or vertical or horizontal integration. First they would have to raise funds by non violent means, by being everday cooperating players in the market- it could reach a point where their corporation attains blue chip status, but thats because they have proven to have the best prices, the best service, and the most effective cost cutting strategy. This is the easiest path to success in the market. Not some mustache twirling scheme, of gaining influence in the market, then becoming a psychopathic tychoon bent on being a trillionaire.
The other strategy of attaining a socially un-optimal monopoly thru buyout is not practical in free markets. It has to do with the fact that with every company you buyout, the higher the bidding price for the next company. It's the hold out problem.