The Limited Role of Market Power in Generating Great Fortunes in Great Britain, the United States, and Australia

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Studies of the largest contemporary fortunes in Great Britain, the United States, and Australia each find that over two-thirds of the fortunes originated in competitive industries. A finding that market power is responsible for only one-third of the wealth of the wealthiest individuals is consistent with earlier research. Great fortunes can arise from competitive industries because of risk and uncertainty, infra-marginal (Ricardian) rents, and disequilibrium.