But Elzinga is unconvinced. So, in his thought experiments, we are invited to toss out everything we know about the way real markets work. It is just that easy. We meet bid poolers who successfully conspire to divide up the profits. His examples show that Elzinga has more than a mere quibble with one aspect of the way markets work.
Businessmen can indeed be greedy.
They may indeed attempt to act in the way Elzinga suggests they do. Finally, let us assume that every investment banking firm would love to possess and hold onto a global resource monopoly. The answer lies in the dynamics of market competition. Competition requires that firms win and keep the affections of consumers in order to generate profits in the short and long term. In the market economy, competitive forces are built into the very structure of the profit and loss system.