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 canโt afford to litigate have been forced to fold based on Acushetโs 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 thatโs just how business is done.
Yes, itโs about golf balls but this occurs with nearly all products. Iโd be really reluctant to start any business in the US that went head to head directly with anyone large โ just think about how much competition that is preventing.