Monopoly – Conditions and Their Consequences
7 Pages Posted: 12 Oct 2014
Date Written: 2014
The issue of monopoly is central to competition law. Despite the common use of this term in law and legal journals, the fundamental questions related to it are not well understood. This article is addressed both to lawyers, who might be willing to enhance their understanding of the conditions for a monopoly to exist, and to economists, who might be eager to analyze economic questions through the prism of legal reasoning and to get familiarized with the vital legal issues related to the formulation of economic arguments. The following conditions for the existence of a monopoly are analyzed: the control of a resource or input, increasing returns to scale, technological superiority, and government-created barriers.
Keywords: monopoly, market power
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