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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (209707)	11/1/2004 12:29:09 PM
From: Peter Dierks	Read Replies (1) \| Respond to of 1577893

It is true that industries have a tendancy to become monopoly. The opportunity will eventually arise just through random walks and positive feedback. The problem with state run industries is that there is no incentive for the government to reign in the monopoly behavior either. It is also true that monopolies tend to become uncompetitive and whither on their own. An example would be what happened to IBM at the very moment it had vanquished almost all competitors in the mainframe business. Its stock languished for several years, because IBM was not selling innovation. It took massive layoffs and refocusing to change the problem. Government monopolies do not have the incentive to change that ones with substantial public ownership do.