Inspired by Joseph Schumpeter's suggestion that market imperfections can drive an economy's long-term progress, In Defense of Monopoly defies conventional assumptions to show readers why an economic system's failure to efficiently allocate its resources is actually a necessary precondition for maximizing the system's long-term performance: the perfectly fluid, competitive economy idealized by most economists is decidedly inferior to one characterized by market entry and exit restrictions or costs.Īn economy is not a board game in which players compete for a limited number of properties, nor is it much like the kind of blackboard games that economists use to develop their monopoly models.
Explore the definition, characteristics, and examples of a pure. Authors McKenzie and Lee claim that conventional, static models exaggerate the harm done by real-world monopolies, and they show why some degree of monopoly presence is necessary to maximize the improvement of human welfare over time. Or even if an oil company was a monopoly, and this is a real life example which youll learn more about further on in the greatest monopolies of all time. A pure monopoly occurs when a company lacks competition and is the only seller in a market providing certain goods and/or services. In Defense of Monopoly offers an unconventional but empirically grounded argument in favor of market monopolies.
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