Comment Re:Let's See (Score 1) 220
I agree in spirit with both replies. All companies are in the business of minimizing risk. Even small companies try to minimize risk. Risk is inherent in any strategy a company chooses to engage in.
But risk-averse does not mean without risk. A monopoly can continue its practices, but they run the risk of being knocked off by a more innovative competitor. A monopoly still has to work to stay ahead of those on its heels. A company is in the game whether they like it or not, so they have to play the game, monopolies included. Although it is true that companies don't like to shake things up, at least until a crisis or three occurs.
However, if there is a way to change the rules, like say, gain government protection then a company's business model shifts tremendously. It would seem like a market would have to be pretty screwed up to get deregulated, but it does happen, just ask your favorite big airline. However, with the Government barrier to entry, Monopolies have a different success threshold than other compainies. They just have to keep the pleasure of their existence slightly higher than the pain it would take to deregulate them. Which is a far easier trick, because palm greasing also happens to garner a lot of rose-colored glasses, for the policymakers.
But risk-averse does not mean without risk. A monopoly can continue its practices, but they run the risk of being knocked off by a more innovative competitor. A monopoly still has to work to stay ahead of those on its heels. A company is in the game whether they like it or not, so they have to play the game, monopolies included. Although it is true that companies don't like to shake things up, at least until a crisis or three occurs.
However, if there is a way to change the rules, like say, gain government protection then a company's business model shifts tremendously. It would seem like a market would have to be pretty screwed up to get deregulated, but it does happen, just ask your favorite big airline. However, with the Government barrier to entry, Monopolies have a different success threshold than other compainies. They just have to keep the pleasure of their existence slightly higher than the pain it would take to deregulate them. Which is a far easier trick, because palm greasing also happens to garner a lot of rose-colored glasses, for the policymakers.
