Government Not Monopolies Undermine Individuals’ Wellbeing

Source: Cobden Centre
by Dr. Frank Shostak

“By popular thinking, monopolies are seen as undermining individuals’ wellbeing. For instance, monopolies are being blamed for causing large increases in the prices of goods and services. According to Jean Tirole the 2014 Nobel Laureate in Economics, monopolies undermine the efficient functioning of the market economy by being able to influence the prices and the quantity of products. Consequently, this undermines the wellbeing of individuals in the economy. By this way of thinking, monopolies cause the deviation of the market conditions from the ideal state as depicted by the “perfect competition” framework. What is then required is effective enforcement of government regulations of monopolies.” (07/02/24)