In capitalist reality...it is ... competition from the new commodity, the new technology, the new source of supply, the new type of business organization - competition which commands a decisive cost or quality advantage and which commands a decisive cost or quality advantage and which strikes not at the margins of profits of the existing firms but at their foundation and their very lives. This kind of competition is ... so... important that it becomes a matter of competition indifference whether competition in the ordinary sense functions more or less promptly; the powerful lever that in the [very] long run expands output and brings don prices is in any case made of other stuff.
...neglects the ability of powerful established firms to erect private storm shelters --or lobby government to build public storm shelters for them --in order to shield themselves from the Schumpeterian gales of creative destruction. It ignores the difference between the legal freedom of entry and the economic reality deterring the entry of potential newcomers into concentrated industries.
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McConnell Brue Economics
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