I remember reading somewhere that perfect competition under a free market was not really stable nor desirable.
This is because it causes profit margins to tend to 0 which has 2 negative effects:
* makes companies more fragile to externalities
* does not allow companies to accumulate treasuries that enable them to do research, innovate, take risks, etc
The end result is a stale stagnated balkanized economy. The corollary is that some market imbalances and assymetries are healthy.
Anyone knows where this reasoning comes from? Did I dream it up?
You didn’t dream it it’s just called reality
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Yes but who initially wrote it down. A lot of stuff seems obvious in hindsight but it took a bright might to notice it and formalize it.
No, that's called fiat mindset
