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Monopoly in sentence

511 examples of Monopoly in a sentence

In this newly competitive environment, oil will trade like any normal commodity, with the Saudi monopoly broken and North American production costs setting a long-term price ceiling of around $50 a barrel, for reasons I set out in January.
But if the goal is merely for the communists to retain their monopoly on power, in both Hong Kong and China, then the rot that has settled into Hong Kong's polity and its economy may begin to infect the mainland.
The lesson is that whenever patents are extended to a new domain, we must be attentive to whether their positive incentive effects are outweighed by the main disadvantage of granting what is in essence a monopoly to the inventor: slower adoption by others.
The Warburg brothers, Max and Paul, were a transatlantic tandem, energetically pushing for German-American institutions that would offer an alternative to British industrial and financial monopoly.
But, by enabling the rise of monopoly power, and by facilitating barriers to entry, the growth of IT has also had major negative economic, social, and political side effects, including the proliferation of “fake news.”
For starters, the very structure of the IT sector allows for the formation of monopoly power.
IT firms could defend their monopoly power through patents or by copyrighting intellectual property.
With the pace of IT innovation increasing, monopoly power is also rising.
In a recent paper measuring the economic effects of monopoly power, I approximated normal levels above which profits or stock values are not purely chance events, but rather reflective of monopoly power.
With these levels, I measured the monopoly component of total stock values – what I call “monopoly wealth” – and of monopoly profits or rent.
I then sought to determine how monopoly wealth and rent have evolved.
The figure below shows monopoly wealth as a percentage of total stock-market value between 1985 and 2015.
As the data show, there was no monopoly wealth in the 1980s.
But as the IT industry developed, monopoly wealth rose dramatically; it reached 82% of total stock-market value – equivalent to some $23.8 trillion – in December 2015.
This is the extra wealth gained by rising monopoly power, and it is continuing to grow.
To put in perspective the percentage of monopoly wealth, consider the related sharp rise in corporate leverage.
In other words, investors have agreed to finance corporate debt by using monopoly wealth as collateral, and most trading in the stock market can therefore be thought of as traded ownership of monopoly wealth.
As the table below shows, nine of the ten firms with the largest monopoly wealth in December 2015 are IT-related, focusing on mobile communications, social media, online retailing, and drugs.
Similarly, most monopoly wealth among the top 100 firms, is being created by companies transformed by IT.
Income created by firms with monopoly power is divided into three types: labor income, normal interest income paid to capital, and monopoly profits.
The data show that in the 1970s and early 1980s, monopoly profits were negligible.
But since 1984, the share of monopoly profits has risen steadily; it reached 23% of total income produced by American corporations in 2015.
This means that during the three decades before 2015, monopoly power caused the combined shares of wages and normal interest on capital to decline by 23%.
Rising productivity and capital accumulation increases wages and capital income, but monopoly power reduces these income shares.
Why, then, has rising monopoly power in the IT sector caused income and wealth to concentrate in fewer hands, leading to an increase in personal income and wealth inequality?
One part of the answer is that rising monopoly power increased corporate profits and sharply boosted stock prices, which produced gains that were enjoyed by a small population of stockholders and corporate management.
First, because most technology-based monopoly power does not violate existing antitrust laws, regulating IT will require new measures to weaken monopolies.
Second, standard views of business income and wealth taxation will need to be adapted to account for IT firms’ monopoly power.
It wasn’t terror that was the basis of Stalin’s power, but his complete monopoly on information.
To be sure, basic models – for example, theories of monopoly and simple oligopoly, the theory of public goods, or simple asymmetric-information theory – have some educational value.
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