I had an arguement with one of my friends some time ago about capitalism and monopolistic markets. My theory (though I am not sure if there are papers that would prove this theory) is that capitalism encourages monopoly. The look I recieved from him was that of a completely shaken learned soul giving me the feeling that I made the gravest of mistakes that I possibly can for this life.
Just my train of thoughts:
Capitalism -> minimum interference from the government. Markets are mostly laissez-faire and information is freely available(well, ideally). There are equal opportunities available to every player in the market. In the real world, if one closely look at the governments in such countries, they find them interefering little with the markets. Thereby, players begin to grow or consolidate into big players. Governments do not hold a big stake in even the big industries and the players eventually evolve into a market leader and a follower. Now, if the market leader is much bigger than its follower, we have a monopoly. Since Europe is socialistic (and communistic, in a few places) cannot see to stand this result of capitalistic society, Microsoft is having trouble in EU and paying nearly 500 million euros.
In effect, wouldn't a capitalistic society encourage monopoly?
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