Q: Do you think that without regulatory capture, antitrust charges would have been brought against Google?
Oh yeah. An 88 percent market share in search advertising? That is by definition a monopoly.
Nope, it ain’t.
It’s market dominance, certainly, there’s undoubtedly market power there as well. But “mono” and “one” are rather closely connected. That they’ve not got that other 12% means they are not a monopoly.
Q: At the Stigler Center conference on concentration, you called Google “the closest thing to a natural monopoly I’ve seen in my lifetime.” Can you elaborate?
I would say Google is as close to a natural monopoly as the Bell System was in 1956. If you came to me and said “Hey, I want to start a company to compete with Google in search,” I would say you’re out of your mind and don’t waste your energy or your time or your money, there’s just no way. Classic economics would say that if there’s a business in which there are 35 percent net margins, that would attract a huge amount of new capital to capture some of that, and none of that has happened. That tells you there’s something wrong.
Bing, Duck Duck Go…….
If Snapchat could really compete on an equal basis with Facebook that would be okay, but every time Snapchat introduces some new innovation, Facebook knocks it off shortly thereafter so that they won’t have any differentiation
There’s no competition because the competition is too fierce…..