Do you feel that the government should break up large firm's at the oligopolies?

Question

Do you feel that the government should break up large firm's at the oligopolies?

Answer 1

Well oligopolies still allow for competition - unlike the monopoly.  How would you break them up in a fair way?

An industry could have 2-4 companies - one will be the largest and slightly more dominate and one will be just hanging in there at the bottom.  Cant punish just one for doing better that the others.

Might make it easier for new companies to enter the industry, which would dilute and eventually break the oligopolies.

Answer 2

"Combinations in restraint of trade" or monopolies have an opportunity to abuse labor and consumers.  Historically there is significant evidence of monopoly and oligopoly activities which contribute to economic and social disasters.  Depressions are not uncommon.  Recessions are the industrial and technical economic variation of an economic Depression.

The challenge is to develop and maintain oversight of activities and events which are very often on a new frontier or cutting edge of progress.  Government must protect the general public from adverse economic disadvantages which monopolies and oligopolies can generate.

Exxon is a good example of a corporation which maintains a staff of expertise which out paces federal of government knowledge of its profit objectives.  Regulation in this type of situation is an enormous task.