Austrians vs. Neoclassicists on Monopolies

Source: Ludwig von Mises Institute
by JW Rich

“A monopoly is often seen as one of the gravest and most concerning manifestations of market failure. In the neoclassical tradition, the existence of a monopolist in a market is generally seen as sufficient justification for government intervention to put a halt to the monopolist’s exploitative ways. The Austrian tradition, however, has historically remained skeptical of this alleged problem of monopoly. Two of the most prolific Austrian theorists, Murray Rothbard and Israel Kirzner, have themselves offered objections to the neoclassical perception of monopoly. While they attack the traditional conception of monopoly differently, their arguments are ultimately compatible and offer an alternative perspective on this important economic issue.” (07/28/22)