The technologies and cost structure of commercial mass media production in the 20th century are not conducive to vigorous, atomistic competition
. Groups express strong preferences for specific types of programming or content.
(4) It also implies accepting another of Schumpeter's prescripts: that sometimes one large firm is best, when that firm can produce most cheaply (and, as Schumpeter noted, internalize the benefits of research and other ideas, which have free rider problems and will be underproduced in Adam Smith's world of pinmakers) (5) To put it otherwise, atomistic competition
may not be as efficient as other market structures.
It would seem more appropriate to attempt to list the conditions under which no price discrimination occurs: perfectly open markets, perfect information about prices on the part of consumers, no transactions costs, and a constant-cost industry structure--that is, precisely the conditions required for perfect or atomistic competition
. The conclusion should be obvious: these conditions are never met, profit seekers never use uniform pricing, and therefore all pricing entails some form of price discrimination.