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November 15, 2022

Discussion 12: Monopoly

In some ways, monopoly is just another form of regulation
The premise is that markets stop working if they’re not competitive…
So government can make markets competitive by regulating monopolies
This is a timely topic: the US has been controlling monopolies since 1890
And President Biden signed an Executive Order on competition in July 2021
The American public is routinely worried about monopolies
AT&T…Amazon… Microsoft… Facebook…
But are these technically monopolies?
If so, how do we think about monopolies and antitrust law?

Questions:

What can we assume about the intentions of policy-makers?

What does economic theory have to say about this problem?

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