Monopoly

  • an 1879 cartoon depicts powerful railroad barons controlling all the rail system.

    a monopoly (from greek μόνος, mónos, 'single, alone' and πωλεῖν, pōleîn, 'to sell') exists when a specific person or enterprise is the only supplier of a particular commodity. this contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few sellers dominating a market.[1] monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit.[2] the verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. in economics, a monopoly is a single seller. in law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices.[3] although monopolies may be big businesses, size is not a characteristic of a monopoly. a small business may still have the power to raise prices in a small industry (or market).[3]

    a monopoly is distinguished from a monopsony, in which there is only one buyer of a product or service; a monopoly may also have monopsony control of a sector of a market. likewise, a monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. monopolies, monopsonies and oligopolies are all situations in which one or a few entities have market power and therefore interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that distort the market.[citation needed]

    monopolies can be established by a government, form naturally, or form by integration. in many jurisdictions, competition laws restrict monopolies due to government concerns over potential adverse effects. holding a dominant position or a monopoly in a market is often not illegal in itself, however certain categories of behavior can be considered abusive and therefore incur legal sanctions when business is dominant. a government-granted monopoly or legal monopoly, by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group. patents, copyrights, and trademarks are sometimes used as examples of government-granted monopolies. the government may also reserve the venture for itself, thus forming a government monopoly, for example with a state-owned company.[citation needed]

    monopolies may be naturally occurring due to limited competition because the industry is resource intensive and requires substantial costs to operate (e.g., certain railroad systems).

  • market structures
  • characteristics
  • sources of monopoly power
  • monopoly versus competitive markets
  • inverse elasticity rule
  • price discrimination
  • monopoly and efficiency
  • monopolist shutdown rule
  • breaking up monopolies
  • law
  • historical monopolies
  • countering monopolies
  • see also
  • notes and references
  • further reading
  • external links

An 1879 cartoon depicts powerful railroad barons controlling all the rail system.

A monopoly (from Greek μόνος, mónos, 'single, alone' and πωλεῖν, pōleîn, 'to sell') exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few sellers dominating a market.[1] Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit.[2] The verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices.[3] Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market).[3]

A monopoly is distinguished from a monopsony, in which there is only one buyer of a product or service; a monopoly may also have monopsony control of a sector of a market. Likewise, a monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations in which one or a few entities have market power and therefore interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that distort the market.[citation needed]

Monopolies can be established by a government, form naturally, or form by integration. In many jurisdictions, competition laws restrict monopolies due to government concerns over potential adverse effects. Holding a dominant position or a monopoly in a market is often not illegal in itself, however certain categories of behavior can be considered abusive and therefore incur legal sanctions when business is dominant. A government-granted monopoly or legal monopoly, by contrast, is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group. Patents, copyrights, and trademarks are sometimes used as examples of government-granted monopolies. The government may also reserve the venture for itself, thus forming a government monopoly, for example with a state-owned company.[citation needed]

Monopolies may be naturally occurring due to limited competition because the industry is resource intensive and requires substantial costs to operate (e.g., certain railroad systems).

Other Languages
Afrikaans: Monopolie
العربية: احتكار
asturianu: Monopoliu
azərbaycanca: İnhisar
Banjar: Kuluh
Bân-lâm-gú: To̍k-chiàm
беларуская: Манаполія
беларуская (тарашкевіца)‎: Манаполія
български: Монопол
bosanski: Monopol
català: Monopoli
čeština: Monopol
Cymraeg: Monopoli
dansk: Monopol
Deutsch: Monopol
eesti: Monopol
Ελληνικά: Μονοπώλιο
español: Monopolio
Esperanto: Monopolo
euskara: Monopolio
فارسی: انحصار
føroyskt: Einahandil
français: Monopole
Gaeilge: Monaplacht
galego: Monopolio
한국어: 독점
հայերեն: Մենաշնորհ
हिन्दी: एकाधिकार
hrvatski: Monopol
Bahasa Indonesia: Pasar monopoli
interlingua: Monopolio
íslenska: Einokun
italiano: Monopolio
עברית: מונופול
Kiswahili: Uhodhisoko
Latina: Monopolium
latviešu: Monopols
Lëtzebuergesch: Monopol
lietuvių: Monopolija
Lingua Franca Nova: Monopolio
magyar: Monopólium
македонски: Монопол
मराठी: एकाधिकार
مصرى: احتكار
Bahasa Melayu: Monopoli
Nederlands: Monopolie
日本語: 独占
norsk: Monopol
norsk nynorsk: Monopol
occitan: Monopòli
oʻzbekcha/ўзбекча: Monopoliya
ਪੰਜਾਬੀ: ਇਜਾਰੇਦਾਰੀ
پښتو: انحصار
polski: Monopol
português: Monopólio
română: Monopol
русский: Монополия
Scots: Monopoly
shqip: Monopoli
Simple English: Monopoly
سنڌي: ھڪھٽي
slovenčina: Monopol ponuky
slovenščina: Monopol
српски / srpski: Монопол
srpskohrvatski / српскохрватски: Monopol
suomi: Monopoli
svenska: Monopol
Tagalog: Monopolyo
தமிழ்: ஏகபோகம்
Türkçe: Tekel
українська: Монополія
文言: 壟斷
吴语: 垄断
ייִדיש: מאנאפאל
粵語: 攬操
中文: 垄断