Monopolies—Good or Bad?

Abstract

Market or monopoly power is generally condemned by economists on the grounds that it leads to a misuse of resources and a reduction in economic welfare. This concern has led to the establishment of bodies (such as the Monopolies and Mergers Commission in the UK) whose aim is to identify the existence of market power, then to regulate or eliminate any monopoly abuse.

The evidence that monopoly is important is negligible, and the evidence that it is a quite minor influence on the workings of the economy is large. G. J. Stigler (1982, p. 24).