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Intellections Discussion

Identifying A Monopoly: It's More Than Just Market Share

Does a company need to be the only provider in order to display “monopolistic behavior?”


No. They just need to muscle out competition. Low prices can do this, but the consumer will make the correction at some point. The nature of demand will change and that can be a number of things. It can be quality, quantity, customer service, even political opinions that the company carries.

No. They do need to have the ability to prevent or discourage competition, either through pricing power, regulatory protection or other means of maintaining near total control of the supply of the monopoly good.