U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
Old 12-21-2019, 03:17 PM
7,658 posts, read 3,371,018 times
Reputation: 4894


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?
Reply With Quote Quick reply to this message


Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top