Mapping the world's opinions

convo top image

What are the pros and cons of monopolies?

The word monopolies has negative connotations in economic history, but recently monopolies have been praised by people such as Warren Buffett and Peter Thiel. The arguments for and against are not new, but now they have better empirical support.
Economics , History

Monopolies are damaging to economies

Monopolies choke economies: competition is central to a healthy economic system

Monopolies reduce wages for workers

Monopolies or tight oligopolies have "pricing power" Explore

Monopolies lead to higher prices

With no consumer choice, companies have pricing power. Explore

Monopolies reduce innovation

Monopologies have no need for innovation to stay ahead. Explore

Oligopolies behave like monopolies

Concentrated oligopolies are just as bad for economic growth as monopolies Explore

Monopolies reduce entrepreneurial activity

Rising product market concentration leads to a collapse in entrepreneurial activity Explore

Monopolies are good for the economy

Monopolies provide capital for R&D and incentives to entrepreneurs.

Monopolies stimulate capitalism

Without monopoly type profits, there would be little incentive to innovate. Explore

Monopolies can invest in innovation

Perfect competition erodes returns leaving little for R&D Explore
This page was last edited on Monday, 20 Jan 2020 at 15:38 UTC