5 ms·
> Microsoft in the 90s How long did the "monopoly" last? Were consumers injured by it? > Standard Oil Standard Oil was huge because they were cheaper than th
by m_myers 16y ago
> Microsoft in the 90s
How long did the "monopoly" last? Were consumers injured by it?
> Standard Oil
Standard Oil was huge because they were cheaper than the competition. Kind of like how Wal-Mart did it. Is that a bad thing?
- jacoblyles 16y agoIt's surprisingly hard to find an example of the textbook monopoly where prices actually rise. Diamonds, maybe?
- m_myers 16y agoThe funny thing is that the high prices did drive competition -- modern synthetic diamonds are virtually identical to the naked eye and are just as good (if not better) for industrial machinery. But thanks to some really good marketing, people continue to pay a premium for the "real" thing.
- mtviewdave 16y agoIt's not just a question of prices rising. Failure of prices to drop to the level they would otherwise in a competitive environment is also damaging. AT&T is one example of such a situation. After the breakup of AT&T, long-distances prices dropped dramatically, and quality improved just as dramatically. And I'm not sure how far your definition of "textbook monopoly" stretches, but the concept of "antitrust" covers not just monopolies, but cartels and cartel-like activity (like secret price-fixing agreements). OPEC is an example of cartel that has been successful in keeping prices artificially high for probably a majority of its existence.
- anamax 16y ago> AT&T is one example of such a situation. After the breakup of AT&T, long-distances prices dropped dramatically Long distance prices dropped when the long distance monopoly ended, not when AT&T was broken up. That monopoly was a creature of law.