Competition is for Losers

winner-takes-allHere is an eye-opening piece on cartels and their influence on society.

A few notes:

  • Cartels look like everything but mega-villains.
  • For instance, doctors act as a cartel when US universities have a cap on the number of residency slots. US doctors are paid twice as much as European doctors as a result.
  • Laws preventing new constructions favor existing landlords. Their economic and societal costs are large – many can’t afford the rent for a higher-paying job in a more expensive town.
  • Universities have an accreditation system, which prevents new forms of education.
  • The NCAA prevents students from being paid, while universities are cashing in.
  • Taxi medallions maintained high transportation costs, until Uber came in.

Price-Changes

  • The biggest risk of an effective cartel is member discontent.
  • The most efficient cartels are perfectly legal. They put forward public interest and product integrity issues to recruit governments.
  • Cartels use non-profits and public relations very effectively.
  • Big Tech is not the biggest threat.
  • There are many active cartels right under our eyes.

 

 

 

 

 

 

 

The top of the article is below. Click on it to gain access to its entirety.

Credit to Philo, on philo.substack.com 

Cartels-Article-Top

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Written by Gontran de Quillacq

Gontran de Quillacq is an expert witness and a legal consultant. He is a recognized authority in options, trading, derivatives, structured products, portfolio management, hedge funds, mathematical finance, quantitative investment, strategy research and financial markets in general.

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