Canada: three oligopolies in a trenchcoat.

Bank service charges and overdraft fees can infuriate consumers, and more choices could lower their temperature.

From the perspective of investors, though, Canada’s cozy network of oligopolies – in which a few players dominate one sector – can look very different. Slim competition can keep upstarts out and profits in, driving strong shareholder returns and attractive dividends over the long term.

“We have a handful of oligopolies that are able to fend off new entrants (whether regional or foreign) without needing to destroy profits for an extended period of time, or where we need a government financed solution,” Ian de Verteuil, head of portfolio strategy at CIBC Capital Markets, said in an e-mail.

https://archive.is/1BPVW

  • No_Eponym
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    3 months ago

    Honestly, if we needed ologopolies because of our population/geography, why are they so profitable? They should just be getting by.

    Break up the ologopolies.

    Remove unnecessary/ineffective regulation that has been hijacked to promote protectionism.

    Make all infrastructure a publically owned utility. If services can be offered on that utility efficiently via the private sector (roads, rail, ICT “digital highways”) then let any company use them at a rate that supports sufficient maintenance, repair, and I provements.

    In general, ban rent seeking.

    This isn’t that hard. It’s not happening because the political and bureaucractic classes have been captured by big corporations and we have no real choices.