IP-Bits in Letters 26 December 2018 Self-Correcting Fragmentation in Economics and State Governance (Presentation Slides)

In economics or political life, we often encounter the phenomenon of domination. A dominating position of the company on the market manifests itself via the ability to prevent effective competition between the market players. In politics, the domination of certain political entities has power to limit effective political choice for members of the society.

This article will argue that a natural and self-correcting mechanism for dealing with domination is a fragmentation of economic and political resources.

A fragmentation of economic and political resources might become a mechanism to regulate the cooperation agreements which are difficult to implement or enforce in practice.