Comment: in a free market, monopolies and cartels do not last

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in a free market, monopolies and cartels do not last

There are many examples from the 19th century that demonstrate that monopolies and cartels do not last in a free market. This is because there is no barrier for new participants to enter the market. The main purpose of government business regulation, which is usually written by the existing market participants, is to prevent new players from entering the market by significantly raising the cost of entry. Additionally, with cartels, there is the temptation for the cartel members to perform secret price cutting to increase their revenue, which eventually leads to the collapse of the cartel.

“With laws shall our land be built up, but with lawlessness laid waste.”
-Njal Thorgeirsson