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Nobel laureate shares views on China's economy

By Hao Yan (chinadaily.com.cn)
Updated: 2010-06-28 15:49

Oliver E. Williamson

Nobel laureate Oliver Williamson told sohu.com that monopolies should not be over criticized, but that the organizations should share benefits with society.

He said that situations differ for monopoly enterprises. Some do not have competitors, while some are supported by regulators. The key is to see what the role the government plays in them.

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Williamson also told Wen Wei Po,a Hong Kong-based Chinese language newspaper, that high payment to financial and banking institutions is one of the approaches to minimizing competitors. Without a high income, these talents will open their own firms as a rival to the current players on the market.

Williamson also said high profits are good for the sector. If all the talents establish their own firms, then every player would compete by lowering the service charges and the whole sector would see narrowing margins, and high profits would be gone.