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Old 12-21-2019, 03:17 PM
 
7,658 posts, read 3,371,018 times
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Quote:
Originally Posted by EDS_ View Post
That's delusionally false.

Outside a few governmentally prescribed local area monopolies - nearly always utilities - monopolies simply don't exist in the US. Nor does monopolistic pricing power for long.

They only potential exceptions that matter are drug companies who end up being the sole maker of a drug and that never last long if the maker attempts monopolistic pricing power.


Greatly-simplifying........monopolies must dominate a broad market or markets so completely they are able to accomplish/drive the following over the long term:

1. Intentionally restrict output.
2. Increase prices as output falls - because there are no close substitutes.
3. Decrease/restrict R&D - because there are no close substitutes ergo old tech is good enough.
4. Decrease/restrict investment in plant and equipment.
5. Profit per output rises.

All of this can only happen when there is no important level of competition or a single seller per market.
Whats "not for long", we have been paying very expensive internet and cell phone in a BIG town for some time now because we can only get ONE service provider in our part of town (not a rural area otherwise I would be looking at short wave internet or the such).

Is "not for long" 2 years, 5 years, 10 years? How long is such a situation tolerable before Govt forces a price fix or subsidize alternative service?
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