monopoly

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A half-hearted defence of the pharmaceutical industry

Exorbitant drug pricing by Big Pharma is often viewed as exploitative and unfair to those who don’t have the support of insurance or government subsidies. Justin Liu sort-of explains why it might be a necessary evil.

Is the Co-op Bookshop providing value for its members?

Economics 101 is that a monopoly is fundamentally any enterprise with substantial ‘market power’ – that is, the capacity to set prices and cut back on quantity with little, if any, response from customers.  While most monopolies arise through natural monopoly conditions (for example, essential services including water and electricity distribution), others simply develop when circumstances facilitate their entrenched establishment. Such conditions include high barriers to entry for potential competitors, legislative encouragement and context-specific advancement.

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