Philosophy Dictionary of ArgumentsHome
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| Natural monopolies: A natural monopoly is a market structure in which a single firm can profitably produce and supply an entire market for a good or service. This occurs when the economies of scale are so large that it is more efficient for one firm to produce the good or service than for multiple firms to compete. This is often the case for goods or services that require a large upfront investment in infrastructure. See also Monopolies, Infrastructure, Markets, Supply, Competition._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Neoclassical Economics on Natural Monopolies - Dictionary of Arguments
Mause I 162 Natural Monopolies/Competition/Neoclassics: For neoclassical theory, the prerequisite for perfect competition is that goods and factors can in principle (...) be divided. This is not a problem for homogeneous goods, e.g. salt, but it is impossible for e.g. machines. If the objects under consideration become even larger, such as railway lines or motorways, there is usually only one (regional) supplier that is efficient. Then one speaks of "natural monopolies". In order to prevent exploitation of the other side, the state can set prices for the natural monopolist. Problem: However, since the marginal costs (below the average costs) are due to the subadditivity of the total costs, the monopolist suffers a deficit. See Subadditivity/Baumol._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Neoclassical Economics Mause I Karsten Mause Christian Müller Klaus Schubert, Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018 |
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> Counter arguments against Neoclassical Economics
> Counter arguments in relation to Natural Monopolies
Ed. Martin Schulz, access date 2024-04-19