![]() This contrasts with a monopsony which relates to a single entity. These businesses dominated the market until the early seventeenth century where English courts commenced invalidating monopolies on the grounds that they were hindering the free market.Įnglish parliament enacted a law to prohibit most of the monopolies with an exemption of a few (Statute of Monopolies). A monopoly (from Greek, mnos, 'single, alone' and, plen, 'to sell'), as described by Irving Fisher, is a market with the 'absence of competition', creating a situation where a specific person or enterprise is the only supplier of a particular thing. For example, in England, the King had the power to grant monopoly powers to a person or business to offer a designated good or service. Monopolies are normally created by governments especially when supplying imperative goods and services.Monopoly has been understood to exist throughout the history of mankind. It is a situation in which a single corporation controls the whole supply of goods or services. For example in case of Bangladesh Electricity supply is monopolized, which has no substitute. Monopoly has led to the exploitation of monopoly powers thereby necessitating the establishment of competition law.įrom the above definitions, the monopoly is illustrated by lack of competition, substitutes and presence of high market prices of a good or service. Pure monopoly refers to a type of economic market. The one in monopoly has no close substitutes. 619 (1911) that for a given type of product or service, the monopoly owns all or virtually all of its market. It was established in the case of Standard Oil Co. The legal perspective defines monopoly as an economic edge that a person or company holds as a result of special power to do business thereby repressing competition and permitting such businesses to exclusively control market prices. The general definition of monopoly refers to an existing situation where a definite person or company is the sole supplier of a product or service (Sharkey, 1983). There may be limitations of regulation but in whichever place or country monopolies exist, it is better to regulate them.There are many different perspectives that describe the term monopoly. Further insights will be provided in the paper on some of the monopoly practices in Qatari and laws that are intended for monopoly regulation. Therefore, the research paper will analyze the concept of monopoly. For example, the unique location of a dry cleaner may confer slight market power because some customers are willing to pay a little more rather than walk an. Additionally, a monopoly in Qatar will also be covered.
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