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Walmart - the social benefits of market power

Sunday, March 21, 2010
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A hat tip to Kevin Hinde at Durham for spotting this article in Free Exchange at the Economist

“Wal-Mart clearly has market power, which it occasionally uses abusively, if not necessarily illegally. But sometimes, it uses its market power to accomplish things government entities are unwilling or unable to accomplish—pressing environmental standards on its suppliers, for instance, or reining in abusive lenders.”

A good example to use when evaluating the economic and social welfare aspects of monopoly power



 

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