Changes

==Etymology==

==Etymology==

[[Latin]] monopōlium  < [[Greek]] monopṓlion  right of exclusive sale, equiv. to mono-  mono-  + pōl ( eîn ) to sell + -ion  n. suffix  

[[Latin]] monopōlium  < [[Greek]] monopṓlion  right of exclusive sale, equiv. to mono-  mono-  + pōl ( eîn ) to sell + -ion  n. suffix  

*[http://en.wikipedia.org/wiki/16th_Century 1525]

*[https://en.wikipedia.org/wiki/16th_Century 1525]

==Definitions==

==Definitions==

1. exclusive [[control]] of a commodity or [[service]] in a particular [[market]], or a control that makes possible the [[manipulation]] of prices.  

1. exclusive [[control]] of a commodity or [[service]] in a particular [[market]], or a control that makes possible the [[manipulation]] of prices.  

In [[economics]], a '''monopoly''' (from [[Greek]] monos / μονος (alone or single) + polein / πωλειν  (to sell)) exists when a specific [[individual]] or an [[enterprise]] has sufficient [[control]] over a particular product or [[service]] to determine significantly the terms on which other [[individuals]] shall have [[access]] to it. (This is in [[contrast]] to a monopsony which relates to a single [[entity]]'s control over a market to purchase a good or service. And contrasted with oligopoly where a few entities exert considerable [[influence]] over an [[industry]]) Monopolies are thus characterised by a lack of [[economic]] [[competition]] for the good or [[service]] that they provide and a lack of viable substitute goods. The verb "monopolise" refers to the [[process]] by which a firm gains [[persistently]] greater market share than what is expected under perfect [[competition]].

In [[economics]], a '''monopoly''' (from [[Greek]] monos / μονος (alone or single) + polein / πωλειν  (to sell)) exists when a specific [[individual]] or an [[enterprise]] has sufficient [[control]] over a particular product or [[service]] to determine significantly the terms on which other [[individuals]] shall have [[access]] to it. (This is in [[contrast]] to a monopsony which relates to a single [[entity]]'s control over a market to purchase a good or service. And contrasted with oligopoly where a few entities exert considerable [[influence]] over an [[industry]]) Monopolies are thus characterised by a lack of [[economic]] [[competition]] for the good or [[service]] that they provide and a lack of viable substitute goods. The verb "monopolise" refers to the [[process]] by which a firm gains [[persistently]] greater market share than what is expected under perfect [[competition]].

A monopoly must be distinguished from ''monopsony'', in which there is only one buyer of a product or service ; a monopoly may also have monopsony [[control]] of a sector of a [[market]]. Likewise, a monopoly should be distinguished from a [http://en.wikipedia.org/wiki/Cartel cartel] (a form of oligopoly), in which several providers [[act]] [[together]] to [[coordinate]] services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations where one or a few [[entities]] have market power and therefore must [[interact]] with their customers (monopoly), suppliers (monopsony) and the other firms (oligopoly) in a [http://en.wikipedia.org/wiki/Game_theory game theoretic] [[manner]] - [[meaning]] that expectations about their [[behavior]] affects other players' [[choice]] of [[strategy]] and vice versa. This is to be contrasted with the [[model]] of perfect [[competition]] where firms are price takers and do not have market [[power]]. Monopolists typically produce fewer goods and sell them at a higher price than under perfect [[competition]], resulting in abnormal and sustained [[profit]].  

A monopoly must be distinguished from ''monopsony'', in which there is only one buyer of a product or service ; a monopoly may also have monopsony [[control]] of a sector of a [[market]]. Likewise, a monopoly should be distinguished from a [https://en.wikipedia.org/wiki/Cartel cartel] (a form of oligopoly), in which several providers [[act]] [[together]] to [[coordinate]] services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations where one or a few [[entities]] have market power and therefore must [[interact]] with their customers (monopoly), suppliers (monopsony) and the other firms (oligopoly) in a [https://en.wikipedia.org/wiki/Game_theory game theoretic] [[manner]] - [[meaning]] that expectations about their [[behavior]] affects other players' [[choice]] of [[strategy]] and vice versa. This is to be contrasted with the [[model]] of perfect [[competition]] where firms are price takers and do not have market [[power]]. Monopolists typically produce fewer goods and sell them at a higher price than under perfect [[competition]], resulting in abnormal and sustained [[profit]].  

In many [[jurisdictions]], [[competition]] laws place specific restrictions on monopolies. Holding a [[dominant]] position or a monopoly in the market is not illegal in itself, however certain categories of [[behavior]] can, when a business is dominant, be considered [[abusive]] and therefore be met with [[legal]] [[sanctions]]. A [[government]]-granted monopoly or [[legal]] monopoly, by [[contrast]], is [[sanctioned]] by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group. Patents, copyright, and trademarks are all examples of [[government]] granted and enforced monopolies. The [[government]] may also reserve the venture for itself, thus forming a government monopoly.[http://en.wikipedia.org/wiki/Monopoly]

In many [[jurisdictions]], [[competition]] laws place specific restrictions on monopolies. Holding a [[dominant]] position or a monopoly in the market is not illegal in itself, however certain categories of [[behavior]] can, when a business is dominant, be considered [[abusive]] and therefore be met with [[legal]] [[sanctions]]. A [[government]]-granted monopoly or [[legal]] monopoly, by [[contrast]], is [[sanctioned]] by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group. Patents, copyright, and trademarks are all examples of [[government]] granted and enforced monopolies. The [[government]] may also reserve the venture for itself, thus forming a government monopoly.[https://en.wikipedia.org/wiki/Monopoly]

[[Category: Economics]]

[[Category: Economics]]