Duopoly

Finance Allah Shmoop What are Monopolies vs Monopoly Sinese Ah

monopoly that great nineteen Our game control a whole side

of the board build houses then hotels on it and

odds of a competitor landing there to suffer huge fees

are wickedly Hi You take that cash buy more properties

build more houses and hotels and eventually rule the world

or at least the board That's a monopoly When you

own everything and can raise rates it's pretty much whatever

level the market will pay before just opting Tio do

nothing and stay at home with a key phrase Here

is mono and it's not related to the you know

team kissing disease mano as in one one owner One

center of price is the only game in town will

think Microsoft in the nineteen nineties where its operating system

was pretty much the only way in which computers around

the globe could work pork Today a Google search which

is almost a monopoly with some ninety eight percent of

searches on its servers Is it bad that these companies

produce such amazingly high desired products that they grew into

monopolies No no not at all However regulators got all

willy on them for using that monopoly leverage to then

restrict business from peripheral competitors And that's a naughty That's

a no no The key issue revolves around what governments

defined as quote fair competition unquote like what is fair

here Well if a gas station uses its leverage as

a place where SUVs go to drink up is it

fair for that station to sell a pack of gum

for five bucks Totally But what if the station forced

you to buy that stick of gum with every gallon

of gas Do you have alternatives What if the owner

of that station owned all of the stations within five

hundred miles and then forced everyone who filled up toe

by that five dollar gun with each fill fair pausing

Yeah probably not Well you could say that they have

a local monopoly and that they are unfairly leveraging that

monopoly to there Gummi advantage But okay so that's Monopoly

What about Manafort's une Well a monopoly Billy was one

seller Ammen Ops Unni is one buyer Think a coal

mine in a small town in West Virginia As a

buyer of labour there simply isn't another employer anywhere remotely

close I'm an optioning Well certainly a local one What

about a public school district buying textbooks for its students

Yeah pretty much of an option E Yes private schools

by textbooks but they usually represent a small percentage of

the public school volumes at least in most areas of

the country And there's not a whole lot of demand

for American textbooks in Russia right Amazon Well as faras

books go Amazon probably is well they're responsible for some

seventy percent of all books sold in the country and

well over half around the world And that number's going

up not down So that vaunted man ops any status

is probably coming The result While Amazon can buy it

pretty much any price they want to buy at just

up until the cellar of that book decides it's not

even worth the effort to go pack up the book

in a box and ship it to him or Teo

Get them the log in codes you know to download

it from their servers That isthe Sellers will sell to

a monopoly money until the marginal value at our contribution

of that last book is zero Then they'll stop and

sit there on a whole pile of books or data

that they have to store and we'll do a whole

lot of nothing Well all of this may sound like

it brings the wheels of the world to a halt

It doesn't necessarily mean that right if monopolies price their

products so high that nobody buys well their monopolies worthless

And if men ops inis pay so little for the

product they consume That producer stopped producing it Well then

the need they lived to serve isn't filled and they

more or less die So there is eventually kind of

economic detente in this war of power and leverage It

just you know sheds a lot of blood getting there