I’ve seen first-hand how the density of talent and capital in Silicon Valley supports these “mafias” in the tech world. Coronavirus is causing a short-term exodus as people “temporarily” uproot for other cities. I’d like to think that they will take parts of the ecosystem with them, because it would be healthy for the Valley to have a real competitor; but I just don’t know if it’s possible.
Mafias arise spontaneously everywhere. We see them when they are not continually rooted out.
There is no such thing as a natural free market, whatever the Libertarians insist. A functioning market is always a carefully curated garden.