Comment by octoberfranklin
Comment by octoberfranklin a day ago
A tax on scale.
Yeah I know HN is going to hate me for saying that.
If a big company and a few small companies all have identical costs for producing a product, society is better served by having it produced by the few small companies than the one big company.
Once "better served" is quantified, you know the coefficient for taxation.
Make no mistake, this coefficient will be a political football, and will be fought over, just like the Fed prime interest rate. But it's a single scalar instead of a whole executive branch department and a hundred kilopages of regulations like we have in the antitrust-enforcement clusterfuck. Which makes it way harder to pull shenanighans.
> If a big company and a few small companies all have identical costs for producing a product, society is better served by having it produced by the few small companies than the one big company.
Why? That's exactly the circumstances where the mere potential for small companies to pop up is enough to police the big company's behavior. You get lower costs (due to economies of scale) and a very low chance of monopolization. so everyone's happy. In the case of this DRAM/flash price spike, the natural "small" actors are fabs slightly off the leading edge, that will be able to retool their production and supply these devices for a higher profit.