A Market Approach to Monopolies
Dr. Tamaro J. Green
2021-02-07 17:42:57 viewed: 444
The growth of monopolies can grow from a variety of reasons. Innovation can bring products or services that become acceptable to the mainstream by virtue of their genius. These new products and services might rapidly replace existing products or services or create a new realm of commercial activity. Crises such as natural disasters, man-made crises, or health crises can create business opportunities that are chance situations for one company to dominate a market.
Market dominance may be very difficult to measure in terms of a crisis. Customers may require a product or service during an emergency that does not give them the opportunity to choose from a variety of options. This may lead to a corporate monopoly, especially if a monopoly existed before the crisis. Crises do not last forever and when they are over, the market for the specific product or service that was required may not be as large as it was during the crisis. Although, regulation could restrict the situation of monopolies during crisis from occurring, a better approach may be to let the markets restrict monopolies. Crises are learning opportunities and through planning and risk management the dependency on monopolies are limited if a crisis was to occur.
Monopolies could become extremely profitable during a crisis. Trends in industries during a crisis can have large swings that enable companies that lead in a particular industry to extend their lead even further. This situation may be difficult to avoid as consumers may not have the time to evaluate all of their options when purchasing goods and services and would tend to flock to the common names. Other businesses may not have the resources to develop competing goods and services during this time as the crisis is generally a resource constrained situation. The market for monopolies appears to favour crises as the market can also restrict monopolies. The market for products and services can determine the size and scale of the monopoly by planning and preparation for times of crisis.
Dr. Tamaro Green is a computer science researcher and the founder of TJG Web Services. TJG Web Services, LLC is a consulting firm in the field of information technology. Dr. Green writes on topics of privacy, security, and ethics in information technology and computer science.
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