Saturday, September 4, 2010

Free markets and monopolies

Here are some real-life observations from a story about Indy racing that seem to give the lie to the notion that every capitalist is eager to eliminate as much competition as he can get away with:
You would think Honda's guys would be happy being the only game in town, but that's not necessarily the case.

When you're the only one supplying the engines, the lack of competition reduces the brand value.

"How do you get people excited about Honda products when you win every week?" asked Erik Berkman, president of Honda Performance and Development. . . .

But the most telling comments came from Indy Racing League CEO Randy Bernard, who said, "We compete with all types of entertainment. The biggest movie out there tomorrow will compete with us on ticket sales." Bernard understands motorsports must compete for attention in a world obsessed with gadgets and technology.

Which is why the future looks bright for IndyCar.

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