Monopoly

Uncle Leo

I admit it, I am not a business type so I do not understand business rules at all.

(This post inspired by the Microsoft EU lawsuit).

In the US we have laws against monopoly because competition is a good thing. I think we can all agree that competition is good. However, if the competition ends by the best "competitor" coming out on top and burrying everyone else (i.e. Microsoft), is it not "anti-lazies faire" to have rules that say competition must be (artificially) created.

If Coke buries RC, Pepsi, etc and becomes the only soda maker, is this a problem. In theory if Coke gets complacent and starts making a bad product or charging too much money for their product, the door then opens for a competitor.

Again, I agree that competition is good and I think the market has lots of flaws that need public intervention (different topic for different thread) but in the case of monopolies, I was hoping someone could give me "monopoly for dummies." When someone becomes a monopoly, how have they "broken" the law and what is their responsibility to change the situation. Do the "lazies faire" capitalists here agree with these rules?

Monopoly for dummies please.

PS: I admit it. I do not remember how to spell "lazies faire."
PPS: If this results in a Monopoly game, I get to be the shoe.

farfromglorified

Monopolies are not inherently bad things. They are only bad when they are the product of willful destruction of competition. The purpose of capitalism is not to promote competition. Competition is simply a product of capitalism.

EDIT: To answer the question you pose: no it is not a bad thing if Coke destroys Pepsi, assuming they do so within the confines of their own products. If Coke destroys Pepsi by dropping a bomb on the Pepsi corporate offices or by poisoning Pepsi's product, it is a bad thing.

rightondude

When monopolies get greedy = when animals attack.

PaperPlates

rightondude wrote:

When monopolies get greedy = when animals attack.

when poor people and downtrodden get jealous = when animals attack.

prytocorduroy

I don't mind monopolies if they are distributed fairly to the consumer. Like Microsoft for example, they weren't ripping people off, so what's the problem? Just my take.

decides2dream

monopoly is only good when you have the most hotels.
and i get to be the scottie dog.

denverfan

Look, anyone who runs a business has a goal of ruling all within the sector in which they operate...dont kid yourself!