Arcana on Nostr: A market monopoly is in that position because they offer such a good service or ...
A market monopoly is in that position because they offer such a good service or product, that there is no viable competitor because there isn't really anything to compete on. It doesn't hold monopoly position due to artificial restrictions on competition but through offering a genuinely good product or service.
A modern example is Steam, which is pretty well liked by both developers and gamers, and there's really nothing that any potential competitors can offer that would usurp its market position. Forcefully breaking this monopoly position by giving artificial advantages to Epic Store or whatever would not benefit consumers.
A coercive monopoly is one which holds its position due to an artificial advantage or legal restrictions. Patents are an example of this, as is anything that the government mandates or enforces. Police are an example of a coercive monopoly for example, or in terms of business, Student Loans Company are a coercive monopoly. They have their monopoly position not through being the best possible but because they're given government backing or special legal status.
Tldr; a market monopoly is one that holds monopoly position due to actually being good and the moment it becomes bad it's vulnerable to being competed with
A coercive monopoly is one that holds monopoly position due to a state imposed artificial advantage such as being illegal to compete with it or having an official standing over others
A modern example is Steam, which is pretty well liked by both developers and gamers, and there's really nothing that any potential competitors can offer that would usurp its market position. Forcefully breaking this monopoly position by giving artificial advantages to Epic Store or whatever would not benefit consumers.
A coercive monopoly is one which holds its position due to an artificial advantage or legal restrictions. Patents are an example of this, as is anything that the government mandates or enforces. Police are an example of a coercive monopoly for example, or in terms of business, Student Loans Company are a coercive monopoly. They have their monopoly position not through being the best possible but because they're given government backing or special legal status.
Tldr; a market monopoly is one that holds monopoly position due to actually being good and the moment it becomes bad it's vulnerable to being competed with
A coercive monopoly is one that holds monopoly position due to a state imposed artificial advantage such as being illegal to compete with it or having an official standing over others