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by djur
4610 days ago
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Companies usually have to grow to a particular size before they're able to negotiate preferential treatment. Even so, I don't believe most industries are less competitive because of regulatory capture. Purely competitive markets are a mathematical abstraction. The ENDA isn't about accommodation discrimination (buses, hotels, etc.), though, it's about employment discrimination. Discriminating against potential customers is obviously bad business, and the competitive benefit for not discriminating might be decisive. Even so, government action was effective in almost entirely eliminating that form of discrimination (to the extent that when it occurs, it's seen as a throwback and an outrage). The barriers to entry for operating a bus service would be enormous even without government regulation. The initial capital outlay is substantial, and established firms would be likely to have lucrative exclusive contracts with businesses. Potential riders would take a long time to trust a new bus service, and it would have to operate at a considerable loss for quite some time to build up a reputation. |
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After government action had enabled it in the first place. Jim Crow laws didn't just prevent blacks from riding at the front of the bus: it prevented blacks from starting their own bus companies.
The barriers to entry for operating a bus service would be enormous even without government regulation.
If all the bus services in town discriminate against blacks by making them ride at the back of the bus, but there's no government regulation, a new bus service, even if it's just a single bus, that does not impose that restriction has an immediate customer base: all the blacks that don't want to ride at the back of the bus. (We're assuming that this is a substantial number, which seems historically accurate.) Similar remarks apply to any other product or service where discrimination exists. I find it extremely implausible that, in the absence of government regulation, there would not have been many, many entrepreneurs willing to take advantage of such opportunities, or people to fund them.