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Quotation of the Day…

… is from page 230 of Frank M. Machovec’s superb 1995 volume, Perfect Competition and the Transformation of Economics (original emphasis):

51k3m0xtpgl-_sx373_bo1204203200_Finally, it should be noted that the regulatory apparatus of the state offers numerous ‘contrivances’ … to neutralize the threats of competitors.  For example, large, established firms whose personnel budgets liberally fund, say, on-site employee child-care centres, will likely support women’s rights groups in their quest for new federal labour regulations that mandate such benefits for all firms.  The adoption of such a rule would have no impact on the incumbents’ costs, yet it would boost potential rivals’ costs, thereby reducing (or eliminating) a potential advantage of new entrants who would prefer not to provide child care for their employees.

See also Bruce Yandle.