I think it is a problem. Unless you've worked in one of these industries where there are a handful of major players and rough parity of capability between them (like consumables, electronics manufacturing, heavy industry, oil & gas), corporations trade execs on a regular basis, and when those execs jump ship for a competitor they often lure away a good number of their key staff, too. So not only do you end up with a bigger overall market if they all do well, you end up with leadership (both executive staff and board members) who knows the ins & outs of everyone. It is in everyone's best interest for everyone to succeed, but if a company falters significantly it becomes either an acquisition target or it slowly fades away as key talent migrate to competitors.
Not only this, but if you attend the earnings calls for corporations in the same sector (or even better, if you're lucky enough to attend one of their investor & analyst days), you'll see firsthand how the analysts are wined & dined, and how closely everyone knows everybody else. It's a big game that creates a ton of wealth at the top -- as long as the status quo is roughly maintained and change is incremental.
I understand what you meant, but wealth being created at the top is a bit charitable. Let's call it like it is: it's reallocated from consumers (vs. a more competitive market) and from shareholders (vs. a more competitive management landscape).
Regulatory capture should have a management capture analog. ;)
Not only this, but if you attend the earnings calls for corporations in the same sector (or even better, if you're lucky enough to attend one of their investor & analyst days), you'll see firsthand how the analysts are wined & dined, and how closely everyone knows everybody else. It's a big game that creates a ton of wealth at the top -- as long as the status quo is roughly maintained and change is incremental.