The inexistence of perfect competition

Abstract

In his greatest article, Finance Capital, Hilferding develops the process in which banks, as financial companies, generate the integration of industrial and commercial companies to form monopolic consortia, which control various companies in order to impose their prices and market conditions. This can come about in two ways: Assuming the physical property of multiple companies, or having proprietary control of these, without possessing them physically, only controlling their capital. In both cases, the inexistence of free competition -- the concept that is the foundation of classic and neoclassic economic theory--, is confirmed.