The rise of economic power: some consequences and policy implications
Hoffman, A.C.
American journal of agricultural economics 62(5): 866-872
1980
ISSN/ISBN: 0002-9092 DOI: 10.2307/1240274Document Number: 443525
Economic power (or monopoly - I shall use the terms interchangeably) has its roots in economic structure. Increases in size and market share (other than by merger) usually come as a reward for successful performance in the market place, and more frequently than not are associated with technological progress and efficiency. A neglected but very important concept with respect to the consequences of economic power is bilateral monopoly. It relates to asituation in which power entities deal with each other vertically at successive stages in the marketing system. I am among those who believe we must move in the direction of government control of private economic power. The purpose is not to supplant the private enterprise system where it is doing a good job, but to supplement it in those areas where it is not.