Federal Coal Leasing Policy Competitive And New Entrants

I truly free enterprise system requires free and unrestricted competition among a diversity of suppliers, in order to function properly. The natural attrition of the marketplace tends on the one hand to narrow the competitive field ... but the flow of new competitors entering the arena provides a "diluting" effect, and a "balanced" market place. Without the ready flow of new business entrants, the market becomes increasingly concentrated in the hands of fewer and. fewer firms. Competition among suppliers is diminished and the "free" marketplace suffers accordingly. A number of organizations, both governmental and private, have recently expressed grave con¬cern over the competitive future of the Western coal market. While most have noted that there is currently adequate competition within the Western market, some have cited the growing con¬centration of coal ownership ... particularly federal lease ownership ... in the hands of a relatively few firms. They suggest that unless this apparent trend is reversed or at least stemmed, the number of new firms entering the federally-dominated West may become reduced to the point where competition will suffer.