ECO 550 Wk 6, Disc 1

The company that I chose was Facebook.  Facebook completely dominants the social internet market.  Depending on how you measure, Facebook may account for as much as 95 percent of the time Americans spend using online social networks. A simple reason for the companies' free pass may be that they charge very little or nothing for their services. Facebook's famous pledge "It's free (and always will be)" may help to insulate it from antitrust claims. And indeed, one of economists' primary concerns about dominant firms is that they will gouge consumers, or at least raise prices in a way that pushes some buyers out of the market. But economists also worry that a dominant firm will erect barriers to keep other companies out of its primary market.

The lack of competitors hurts consumers, too, by blocking the introduction of new and potentially better products -- for example, a social networking site that gives users easier control of their content and privacy. Clearly, promising to offer a service for free does not solve this problem. If it finally becomes clear that Facebook's network is so enormous that no other social network can break into the market, then its own business may become a target for regulators. (

Since Facebook is free, the competition would also have to enter the market as a free service, which might not be sustainable to some companies.  In the
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