Another little-examined area where inequality of a sort exerts itself is how large companies tend to baselessly litigate smaller ones out of existence. Just as importantly, want a reason why productivity has been slowing down? The below and this explain that stat all too well.
Tiny manufacturers who can’t afford to litigate have been forced to fold based on Acushet’s accusations alone, with no proof of infringement. For example in 2015, Acushnet sued five small golf-ball makers. The co-founder of one of these companies, speaking on condition of anonymity because of the terms of the settlement, told Quartz that’s just how business is done.
Yes, it’s about golf balls but this occurs with nearly all products. I’d be really reluctant to start any business in the US that went head to head directly with anyone large — just think about how much competition that is preventing.