Market
Memos from Howard Marks: Is it a Bubble?Physical infrastructure assets are often expensive to build and must be situated in specific locations, making the underlying businesses difficult to replicate. This greatly reduces competition risk, and as a result many assets have dominant market positions. For example, no would-be competitor could readily construct an electric power transmission network for a community already served by an established utility or build a new hydroelectric dam beside one in operation. These circumstances effectively restrict competition.