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My "finished econ 101 on the second try with mediocre grades" knowledge says that new companies should get created to compete against the winners if they start abusing the paradigm. In reality, I of course see companies raising the barrier to entry through vertical integration and regulatory capture, among other things.
This article is about this happening less because it isn't profitable.
Exactly. Market failure is described in econ 101 but as I remember it, it's not emphasized as the typical case but rather as the exception. In reality it seems like it's the other way around. Which .. makes sense .. given that competition is not efficient for maximizing profit among other variables.