monopolisoituminen

Monopolisoituminen refers to the process by which a market becomes dominated by a single seller or a very small number of sellers. This phenomenon is the opposite of a perfectly competitive market, where numerous firms offer similar products. In a monopolized market, the dominant firm, or oligopoly, has significant control over pricing and supply, often leading to higher prices for consumers and reduced output compared to competitive scenarios.

Several factors can lead to monopolization. Economies of scale can make it difficult for smaller competitors to enter the market, as the dominant firm can produce at a lower cost per unit. Control over essential resources or raw materials can also create a barrier to entry. Legal barriers, such as patents or exclusive licenses, can grant a company a temporary monopoly over a specific product or technology. Furthermore, aggressive business strategies, like predatory pricing or mergers and acquisitions, can be employed to eliminate or absorb competitors.

The consequences of monopolization are a key concern for economic policy. While a monopolist might achieve significant efficiency through scale, the lack of competition can stifle innovation and reduce consumer choice. Governments often implement antitrust laws and regulations to prevent or break up monopolies and promote a more competitive market environment. These regulations aim to protect consumer welfare and ensure a healthier, more dynamic economy.