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A legal monopoly, statutory monopoly, or de jure monopoly is a monopoly that is protected by law from competition. A statutory monopoly may take the form of a government monopoly where the state owns the particular means of production or government-granted monopoly where a private interest is protected from competition such as being granted exclusive rights to offer a particular service in a ...
In economics, a government-granted monopoly (also called a "de jure monopoly" or "regulated monopoly") is a form of coercive monopoly by which a government grants exclusive privilege to a private individual or firm to be the sole provider of a good or service; potential competitors are excluded from the market by law, regulation, or other mechanisms of government enforcement.
An example that can illustrate this can be found when looking at the United States Postal Service, which has a monopoly over types of mail. According to Wieser, the idea of a competitive market within the postal industry would lead to extreme prices and unnecessary spending, and this highlighted why government regulation in the form of price ...
The state monopoly is legislated for, with legislative instruments precluding competitive activities regarding the provision of goods or services. [15] A poorly contestable market exists, with competition previously operating inefficiently despite the lack of legal restrictions. [15] [16]
The defining trait for Sirius XM is that it's one of America's few publicly traded legal monopolies. While being the only licensed satellite-radio operator doesn't mean the company is devoid of ...
The Justice Department and FTC lost most of the monopolization cases they brought under section 2 of the Sherman Act during this era. One of the government's few anti-monopoly victories was United States v. AT&T, which led to the breakup of Bell Telephone and its monopoly on U.S. telephone service in 1982. [30]
The term monopoly privilege rent-seeking is an often-used label for this particular type of rent-seeking. Often-cited examples include a lobby that seeks economic regulations such as tariff protection, quotas, subsidies, [21] or extension of copyright law. [22]
A monopoly can occur when it finds the best way to minimize its costs through economies of scale to the point where other companies cannot compete with it. [1] For example, if many companies are already offering electricity, the additional installation of a power plant will only disadvantage the consumer as prices could be increased.