Year: 2015
Author: Hank, Rainer
Credit and Capital Markets – Kredit und Kapital, Vol. 48 (2015), Iss. 3 : pp. 371–392
Abstract
Market and Power
The relationship between the market and private power is a tense one. Picturing a market „free of dominance" on which all power is neutralised is naive, simply because ownership represents a great basis of power upon which a liberal society should not shake. Companies are always thinking of ways to increase producer surplus to the detriment of consumer surplus, which distorts distribution of funds on the capital markets and consequently leads to welfare losses. Nevertheless, as a rule, state intervention in the interests of disempowerment is not an option. Often the disadvantages of state empowerment are greater than the advantages. Frequently it is individual companies that benefit rather than the whole of society. However, the market itself still represents the best strategy for disempowerment, combatting inert or old-fashioned firms or sectors by means of competition. This will only work if the newcomers are able to convince people of the greater benefit of what they are offering. Ultimately, it all depends on entrepreneurial ingenuity and creativity.
Journal Article Details
Publisher Name: Global Science Press
Language: German
DOI: https://doi.org/10.3790/ccm.48.3.371
Credit and Capital Markets – Kredit und Kapital, Vol. 48 (2015), Iss. 3 : pp. 371–392
Published online: 2015-09
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 22
Keywords: B50 L10 L40 Market Power State Monopolization
Author Details
| Section Title | Page | Action | Price |
|---|---|---|---|
| Rainer Hank: Markt und Macht | 1 |