Monopoly: Difference between revisions
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In legal contexts, the concept of monopoly extends beyond pure single-firm markets to include various situations where market power is concentrated among very few actors, including duopolies, and oligopolies.<ref name=':0'>{{Cite web |date=July 1, 2023 |title=monopoly |url=https://www.law.cornell.edu/wex/monopoly |archive-url=https://archive.ph/hOJXp |archive-date=June 8, 2024 |website=www.law.cornell.edu }}</ref> | In legal contexts, the concept of monopoly extends beyond pure single-firm markets to include various situations where market power is concentrated among very few actors, including duopolies, and oligopolies.<ref name=':0'>{{Cite web |date=July 1, 2023 |title=monopoly |url=https://www.law.cornell.edu/wex/monopoly |archive-url=https://archive.ph/hOJXp |archive-date=June 8, 2024 |website=www.law.cornell.edu }}</ref> | ||
== Characteristics of | == Characteristics of monopolies == | ||
Monopolistic market structures exhibit several defining features that distinguish them from other market forms. These characteristics create the conditions that allow monopolists to exercise market power and operate with limited competitive constraints: | Monopolistic market structures exhibit several defining features that distinguish them from other market forms. These characteristics create the conditions that allow monopolists to exercise market power and operate with limited competitive constraints: | ||
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*'''Cross-subsidization possibilities''' | *'''Cross-subsidization possibilities''' | ||
*: Monopolists with multiple product lines or customer segments may engage in cross-subsidization'', using profits from one area to support services that might not be economically viable in competitive markets. This practice can sometimes serve social objectives, such as maintaining service to unprofitable rural customers while providing urban services. | *: Monopolists with multiple product lines or customer segments may engage in cross-subsidization'', using profits from one area to support services that might not be economically viable in competitive markets. This practice can sometimes serve social objectives, such as maintaining service to unprofitable rural customers while providing urban services. | ||
== Notable monopolies == | == Notable monopolies == | ||