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A monopoly is not necessarily profitable. I have a monopoly on the distribution of my blog content, but that does not make any difference in my annual income.
by prewett 6y ago
A monopoly is not necessarily profitable. I have a monopoly on the distribution of my blog content, but that does not make any difference in my annual income.
Assuming that the parent's assertion that airlines have a monopoly on the route from airport X to aiport Y is correct, it does not give them any pricing power in general because they do not have a monopoly on all routes from X to Y. There are multiple airlines providing routes from X to Y, hence price competition.
- missedthecue 6y agoThen all he is really saying is that two airplanes cannot occupy the same space at the same time. Everyone knows this. Infants know this. It's simple physics. When people talk about monopoly, they mean the absence of competition. They're talking about one firm having the control over the distribution of some kind of commodity, for instance, Standard Oil. But as you say, airlines have plenty of competition.