Concentrated economic power calls into being organised opposing power, and the balance rather than competition does the regulating.
Galbraith's 1952 argument that large retailers, unions and regulators arose in response to concentrated industry, and that the balance rather than atomistic competition supplies the discipline.
In practice
- A dominant retailer's terms are answered not by a competitor but by a supplier cooperative and a regulator.
- A single large employer in a town is met by a union rather than by a second employer.
- Further reading
- Wikipedia
- Subject
- Economics & Incentives
- Essay
- The theories behind every argument about money