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Steve Randy Waldman
@interfluidity.com

this is a real problem, but cartel is a bad solution, for very obvious reasons. (it is the main solution we currently use in Western economies, which explains why our economies have turned extractive rentier, 'cuz there's no limiting principle to cartel.) can i interest you in a better solution?

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ghost malone ergo propter bones@proptermalone.bsky.social

so long-term the way you'd expect this to go is that the players would slow down capex such that they can make money, but if you do that while your competitor is running at a loss you're roadkill, so everyone needs to slow down at once, which is why you need the cartel.

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Steve Randy Waldman
@interfluidity.com

(How? Do you think states can fine-tune market power, allow firms just enough to cover fixed costs, but not enough to become extractive? Do you think that withstands politicians' and the public's information disadvantages when they lobby for more market power? Historically, how good are we at that?)