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Colin - a natural monopoly is a pretty well-known economic concept. Essentially, you’re able to form a monopolistic business just by the nature of the business
by ericmay 6y ago
Colin - a natural monopoly is a pretty well-known economic concept. Essentially, you’re able to form a monopolistic business just by the nature of the business itself - you don’t have to conduct anti-competitive practices or buy out your competitors. For Search it’s straightforward. The more people who search on your platform, the better the results get. Eventually competitors can’t really emerge because the product is too good. This also happens with low costs as well at certain economies of scale.
My argument against breaking up Google would be they face search competition via Amazon, Facebook, and even Apple. But I can see both sides here. That’s what makes it an interesting case!