The opening of my latest column at EveryJoe:
“Let me give you some examples of monopolies and ask: Which are good and which are bad?
“1. Megan and Ramon begin dating and become enraptured of each other. Soon they are monopolizing each other’s time and decide to form a lifetime, exclusive relationship.
“2. A town in a remote area has a few stores (a grocery, a bank, and a gas station) but no restaurant — until Anita arrives and opens one. Soon she has a lively business of regulars and occasional travelers who eat their meals there.
“3. A chemist invents a new coating that provides airtight seals at a fraction of the current cost. Soon his coating is being used for virtually all products that require an airtight seal.
“4. For twenty years, Carrie and Hardy have been the only two accountants at a medium-size firm. They know the firm’s books intimately, as well as all of its vendors and customers. Carrie retires, leaving Hardy as the firm’s only accountant with extensive knowledge of the firm’s processes.
“5. A mid-size manufacturing company has 1,000 employees, 990 of whom vote to form a union. The company’s owner signs a five-year contract agreeing to bargain only with the new union’s representatives on matters of wages and benefits.
“6. A national government grants special status to a private firm as the only one allowed to deliver mail. If any other company tries to compete, the police will shut it down.
“Monopolies are a regular feature of our lives. But they come about for many different reasons and impact us differently. Humans create and exchange all sorts of values with each other in many markets, and any principled policies about monopoly must be consistent.
“So let’s start with Megan and Ramon, who were in the dating market…” [Read more here.]
Last week’s column: Who Is Really Serious About Monopolies?