On July 1, 2016 the participants of Liberty Discussion Group sat down at Gaia Restaurant to discuss whether markets were efficient or do they tend to monopoly. The discussion was on ‘Are markets efficient, or do they tend towards monopoly? The verdict is in’ by Joseph Stiglitz as suggested by one of the participants.
Few takeaways from the discussion are as follows:
- Nepal got its first taste of liberalization during the 90’s liberalization period, after which it saw high rate of growth (8%). But, there has not been any significant pro-liberal policy change since then.
- The members claimed that rule of law, contract enforcement, limited role of government and transparency are the four pillars of a free market.
- Some members argued that while markets are efficient, they sometimes lead to monopoly.
- Some members argued that a company is has a monopoly power because other competitors cannot match its cost, quality, brand loyalty, among others.
- The members agreed that, in today’s world of information technology, the problem of asymmetric information is not as relevant as it used to be. People have phones, radios, television that transfers news, information almost instantaneously.