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Also, I don't see why a monopoly is inherently bad. If consumers actually benefit from it then what's the rationale in breaking it up? Moreover, sectors like so
by maverick_iceman 9y ago
Also, I don't see why a monopoly is inherently bad. If consumers actually benefit from it then what's the rationale in breaking it up? Moreover, sectors like social networking naturally favor monopolies; it's no good if your friends are scattered around 10 different sites.
The current understanding of US antitrust laws is similar. The Justice Department pursues antitrust actions only if the end consumer is being hurt.
- xapata 9y agoMonopolies maximize profit by setting a price greater than the market clearing price, causing a lot of unmet demand.
- wbl 9y agoExcept that price must be below what competitors will offer.
- chasing 9y agoNo. This is the problem with monopolies. They use other advantages to win markets without competing on price, features, or innovation. It's harmful to consumers.
- xapata 9y agoA monopoly by definition has no competitors.
- wbl 9y agoYes it does! It has all the competitors that could and would be started if prices rose.
- xapata 9y agoYou're counting hypothetical competitors? So how do you propose measuring how many competitors there are in a particular market? With that definition, there are an infinite number even if I can currently purchase from only one vendor.