{"type":"rich","version":"1.0","title":"sommerfeld wrote","author_name":"sommerfeld (npub16r…kz5pl)","author_url":"https://yabu.me/npub16r0tl8a39hhcrapa03559xahsjqj4s0y6t2n5gpdk64v06jtgekqdkz5pl","provider_name":"njump","provider_url":"https://yabu.me","html":"I remember reading somewhere that perfect competition under a free market was not really stable nor desirable.\nThis is because it causes profit margins to tend to 0 which has 2 negative effects: \n* makes companies more fragile to externalities\n* does not allow companies to accumulate treasuries that enable them to do research, innovate, take risks, etc\nThe end result is a stale stagnated balkanized economy. The corollary is that some market imbalances and assymetries are healthy.\n\nAnyone knows where this reasoning comes from? Did I dream it up?"}