The US–Libya (Anti-)Business Association

Type:

Book Chapter

Author:

Jason Pack

Published:

2022

Publisher:

Oxford University Press

Pack uncovers the traditional veil of secrecy surrounding Washington lobbyists to share his counterintuitive discovery that in key industries certain dominant multinationals behave as a cartel, seeking to block new entrants to their market niche. The chapter describes, upon seeking to advance US business interests in Libya, he discovered that the most deeply entrenched companies in Libya do not necessarily seek to increase their profit margins nor find new business opportunities. In fact, they act quite similarly to the peculiar institutions created by Qadhafi with which they do business, obscuring transparency and protecting their ensconced fiefdoms. An episode is detailed in which decision-makers at top global firms in "old school industries," like oil or security, act according to "incumbent psychology," fearing change and seeking to block new entrants. This goes against received wisdom suggesting that the primary danger of public companies' quests to increase shareholder value inherently stems from the "problem of the commons." Companies' "rational" pursuit of profit puts them at odds with larger public goals, like protecting the environment. This chapter's perspective is more alike breakthroughs in behavioural economics, which demonstrate that in certain cases neither firms nor individuals seek to maximize their profit or utility.

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