zg7666 Posted January 27, 2013 Share Posted January 27, 2013 I just had a thought, which I have posted on mises.org forums as well; probably people had similar or same arguments. Just wanna test it and make it very simple. If we as austrians know that monopoly in free markets is impossible, and of course today inefficient ( http://www.youtube.com/watch?v=nOBD6v8g1F4 The Development of the Theory of Monopoly Price: From Carl Menger to Vernon Mund (pdf) by Joseph T. Salerno, September 2003 Fear of Monopoly by Brad Edmonds, March 2001 What's Wrong with Monopoly (the game)? by Benjamin Powell, February 2004 The Question of the Cable Monopoly by D.W. MacKenzie, August 2003 The Development of the Theory of Monopoly Price: From Carl Menger to Vernon Mund (pdf) by Joseph T. Salerno, September 2003 Monopoly and Competition in Money (pdf) by James Rolph Edwards, 1980 The Political Economy of Monopoly (pdf) by Fritz Machlup, 1952 The Myth of Natural Monopoly by Thomas J. DiLorenzo, May 2011) , how is than state - a legal monopoly of force in given geographical area, gonna form again in a voluntary, free society and free markets? And how is it desirable? Monopoly can not and will not form in free market society, therefore state will not re-form. Link to comment Share on other sites More sharing options...
Seneca Posted January 28, 2013 Share Posted January 28, 2013 Ugh nonono. Which type of monopoly because a natural monopoly is entirely possible in a free market. That doesn't make it good. Link to comment Share on other sites More sharing options...
Alan C. Posted January 28, 2013 Share Posted January 28, 2013 Monopoly isn't a problem so long as there are no barriers to entry into the market. A 'market monopoly' may refer to a situation in which economies of scale provide a cost advantage to a firm only because it was first to arrive on the scene, but that isn't a type of monopoly that should concern anybody. See my previous post on "natural monopoly." It's largely a bogus concept, but you have to ask people what they mean by it. Link to comment Share on other sites More sharing options...
zg7666 Posted January 28, 2013 Author Share Posted January 28, 2013 Ugh nonono. Which type of monopoly because a natural monopoly is entirely possible in a free market. That doesn't make it good. Right, right, like Alan Chapman said, I can theoretically understand that there could be natural monopoly but I am wondering if it is practically possible in any bigger scale, globally is clearly impossible, continental also, in territories of today states.. maaaybe, maybe, but in my opinion highly unlikely. Probably you could have some dominant agency, but not a monopoly. Link to comment Share on other sites More sharing options...
Alan C. Posted January 28, 2013 Share Posted January 28, 2013 Diseconomies of scale, and the knowledge deficit which plagues centrally planned economies, would prevent a firm from dominating the market. Link to comment Share on other sites More sharing options...
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