The Pros And Cons Of Antitrust Policies

Does America have a monopoly problem? It seems a growing number of economist and politicians think America has a problem and they have renewed their interest in antitrust policy. “There is certainly an increase in concentration, but not to levels that indicate the presence of many monopolies or even tight-knit oligopolies,” (Frick, 2017). While it seems there are less companies in the market, bigger companies are always edging out smaller companies and in turn cause higher competition between the bigger companies. Antitrust will not punish companies for becoming successful or too big as long as competitors aren’t excluded. Antitrust laws will chalk this up as the competitive process. Antitrust wants to push competition on companies and make the market a more open place. …show more content…
How much regulation is too much and does the government want to hold back companies from being successful. Competition is healthy for most companies and also helps consumers in the process. If a company takes over a market, they can increase prices as much as they want because there isn’t a suitable substitute for the product. Overall, there is an increase in concentration but there is still plenty of competition for companies to thrive in. This article matters in the context of business decision making because if companies are becoming more concentrated it may deter other companies from getting into the market. It also shows that some companies may start to struggle and get edged out of the market. This article shows how concentration within the market can be good and increase competition and also that too much concentration can be a bad thing for the market and