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Coercive monopoly
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{{More citations needed|date=March 2022}}{{Short description|Type of monopoly}}{{Competition law}} {{Use mdy dates|date=February 2025}} In [[economics]] and [[business ethics]], a '''coercive monopoly''' is a firm that is able to raise prices and make production decisions without the risk that [[competition]] will arise to draw away their customers.<ref name="polyconomics Antitrust">[[Alan Greenspan|Greenspan, Alan]], [http://www.polyconomics.com/searchbase/06-12-98.html "Antitrust"] {{webarchive|url=https://web.archive.org/web/20051217172640/http://www.polyconomics.com/searchbase/06-12-98.html |date=December 17, 2005}}, in ''Capitalism:The Unknown Ideal'' by Ayn Rand. Also [http://www.nathanielbranden.com/catalog/articles_essays/question_of_monopolies.html ''The Question of Monopolies''] {{webarchive|url=https://web.archive.org/web/20051024121108/http://www.nathanielbranden.com/catalog/articles_essays/question_of_monopolies.html |date=October 24, 2005}} by [[Nathaniel Branden]] defines and discusses coercive monopoly.</ref> A coercive monopoly is not merely a sole supplier of a particular kind of good or service (a [[monopoly]]), but it is a monopoly where there is no opportunity to compete with it through means such as price competition, technological or product innovation, or marketing; entry into the field is closed. As a coercive monopoly is securely shielded from the possibility of competition, it is able to make pricing and production decisions with the assurance that no competition will arise. It is a case of a [[contestable market|non-contestable market]]. A coercive monopoly has very few incentives to keep prices low and may deliberately [[price gouge]] consumers by curtailing production.<ref>[[Lawrence Kudlow|Kudlow, Lawrence]], [http://www.jewishworldreview.com/cols/kudlow061400.asp "The Judicial Hacker"], in ''Jewish World Review'' (June 14, 2000)</ref> Coercive monopolies can arise in free market or via [[government intervention]] to institute them.<ref name=Hasnas1998>{{cite journal |last=Hasnas |first=John |title=The Normative Theories of Business Ethics: A Guide for the Perplexed |journal=Business Ethics Quarterly |date=1998 |volume=8 |issue=1 |pages=19β42 |doi=10.2307/3857520 |jstor=3857520 |s2cid=44030310}}</ref><ref>{{cite journal|first1=Robert|last1=Bejesky|first2=Orlando|last2=Valle|title=Consumer Welfare and the Sherman Antitrust Act: Reflecting on the Microsoft-Netscape Browser Competition|url=https://heinonline.org/HOL/Page?handle=hein.journals/tmclr19&id=45&div=&collection=|journal=Thomas M. Cooley Law Review|date=2002|pages=37|volume=19}}</ref><ref>{{cite book|accessdate=December 28, 2023|chapter=Ethical and legal considerations of reCAPTCHA|chapter-url=https://ieeexplore.ieee.org/document/6297942|date=2012 |doi=10.1109/PST.2012.6297942 |last=Lung |first=Jonathan |title=2012 Tenth Annual International Conference on Privacy, Security and Trust |pages=211β216 |isbn=978-1-4673-2326-0}}</ref> Some conservative think tanks, such as the [[Foundation for Economic Education]], define coercive monopolies solely as those established by the government or via the illegal use of force, excluding monopolies that arise in the free market.<ref>{{Cite web |last=Richman |first=Sheldon |date=June 27, 2012 |title=Can Mutually Beneficial Exchanges Be Exploitative? |url=https://fee.org/articles/can-mutually-beneficial-exchanges-be-exploitative/ |access-date=March 9, 2022 |website=[[Foundation for Economic Education]] |language=en}}</ref>
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