In short, the only thing that antitrust makes more efficient is the cozy triangle of special interests. Conclusion Classical liberals should take the threat of monopoly seriously. But the answer to this threat is not antitrust laws. Any potential monopoly must instead be exposed to the discipline of market competition. Economists have long made convincing arguments that a natural monopoly is rare.
Most monopolies exist because of government intervention.
Adam Smith rightly warned us of the dangers of business conspiracies. Howard Putnam taped this conversation. It was entered as evidence in the case brought by the government against American Airlines and Crandall. Quoted from Roger E. Meiners, Al H. Ringleb, and Frances L. Edwards, The Legal Environment of Business , 3rd ed., p. 401. Dennis W. Carlton and Jeffrey M. Perloff, Modern Industrial Organization , pp.