Monday, August 24, 2009

Government-Option Healthcare v. Microsoft

The Department of Justice has a long running history of picking fights with Microsoft (EU is even worse) over supposedly monopolistic behavior. The idea seems to be that one player is too large and must be brought down to size.

Based on Obamacare's characteristics as written in the House Bill, does that mean that the Obama Administration has no issues with Microsoft or later Google over dominating their segments of the market?

This behavior is monopsony (a term I just learned; remember use all new terms in a sentence). Monopoly is one seller for many buyers. Monopsony is one buyer for many sellers.

Obamacare is either monopsony today or tomorrow.

So if I understand Obama, he either likes single buyers (or large ones that have the power to delcare itself a monopsony) and hates monopolists or likes monopsonists and monopolists both.

Let's watch Microsoft and Google and learn.

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