Hi, This is the theory in its current working version: An unregulated (free-market) economy will inherently monopolize when, but not necessarily only if, the following are present: - the market is saturated, in other words the number of consumers at any given time are equal to or less than the service providers ability to provide that service (or resource). This means the long-term survival of firms is a function of retained market share and raw resource share control/ownership. - the technology and/or start-up costs are high in material and intellectual factors. This minimizes the potential for new providers to start up. Providers will also require non-disclosure and other mechanisms to reduce sharing of information and cross-communications except under controlled conditions. Expect an increase in certifications and implimentation standards required to do business with the more succesful of these providers. - an individual or small group of service providers have a small but distinct efficiency advantage in technology, manufacturing, or marketing. Over a long-enough time this market advantage will grow and as a result widen the 'technology gap' between firms. - expect the most efficient firms to share their profit with the critical intellectual contributors. This further reduces the problem of cross-communication and new provider start-up. - expect to see the more successful providers to join in co-ops with the less succesful providers. This will be under the surreptitous goal of 'developing technology'. It's actual goal will be to cause these smaller firms to commit resources to such enterprises. As soon as it is strategicaly advantagous the primary providers will break-off the co-op. This has the effect of further reducing the ability of the smaller providers to react in a timely manner to market changes or develop new technology due to resource starvation. - expect to see the less efficient providers to combine in an effort to reap the benefits of shared market share and resources. Unless this partnering provides a more efficient model and there is sufficient time for that efficiency to develop these new providers will eventualy fail or be joined with other providers. - expect to see the primary provider buy those less efficient providers that don't fail completely. These purchases will be as a result of some new or unexpected technology that will significantly increase the market share of the primary provider -or- it will be with the goal of eliminating this secondary technology and forcing those market shares to do without or use the primary providers technology. ____________________________________________________________________ | | | The most powerful passion in life is not love or hate, | | but the desire to edit somebody elses words. | | | | Sign in Ed Barsis' office | | | | _____ The Armadillo Group | | ,::////;::-. Austin, Tx. USA | | /:'///// ``::>/|/ http://www.ssz.com/ | | .', |||| `/( e\ | | -====~~mm-'`-```-mm --'- Jim Choate | | ravage@ssz.com | | 512-451-7087 | |____________________________________________________________________|