Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site cbscc.UUCP Path: utzoo!watmath!clyde!cbosgd!cbsck!cbscc!lvc From: lvc@cbscc.UUCP (Larry Cipriani) Newsgroups: net.politics Subject: the economics of oligopolies - response to Tim Sevener Message-ID: <4289@cbscc.UUCP> Date: Fri, 7-Dec-84 16:21:16 EST Article-I.D.: cbscc.4289 Posted: Fri Dec 7 16:21:16 1984 Date-Received: Sat, 8-Dec-84 05:39:17 EST Organization: AT&T Bell Laboratories, Columbus Lines: 15 Our economics teacher Tim Sevener disregards two things: 1) The oligopolistic structure of the market came about in a climate of regulation -- primarily because of that regulation. Exxon is not a phenomenon of laissez-faire capitalism. 2) Even setting point 1 aside, government action produces inefficiencies of its own. Most (albeit not all) advocates of intervention ignore this ought-to-be-obvious fact. It should be no suprise to you that attempts by mainstream economists to estimate the costs of these inefficiencies INVARIABLY place the costs as not-less-than roughly equal to the costs of the inefficiencies which would obtain from unregulated oligopoly. Larry Cipriani (posting for an economist friend) cbscc!cbsch!lvc