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Author Topic: What causes market monopolization  (Read 287 times)
Berryfolia (OP)
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January 27, 2025, 10:38:00 PM
 #1

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
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January 28, 2025, 03:09:22 PM
 #2

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
Market monopoly isnt a good thing most especially in a civilized society, such shouldn't even exist, but then, it exist due to several factors, some of such factors includes, but not limited to..

1. Greed
2. Power

Greed: greed can be a key factor leading to market monopoly in the sense that if a group of persons (like wholesalers) are greedy and are overpricing a product, the government can be forced to take over the pricing of that product, thereby controlling it - this leads to that particular product being monoplized.

Power: on the other hand, leads to market monopoly in the sense that if a sitting government is one that is desperate and power hungry, this can lead them to want to have control over everything including the prices of goods and products in the market.

It is often better to allow the market to flow freely, as in a monopolized system, things come crashing really bad when ever the power-that-be loses their grip, doesn't always end well for the society involved.
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January 28, 2025, 04:29:05 PM
 #3

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
There is legality at least that I know for the government in my country and they regulate market price conditions for the process of some available products and this aims to balance the price of goods so that they do not soar so quickly. But sometimes it does not fully work because there are still distributors who try to play the price of products according to their wishes especially when the scarcity of goods begins to occur. If you say attitude and manners, it does not apply to them at all because what they think about is how to make big profits even though people have difficulty buying.

The government does not monopolize the market but controls prices to make them more stable, but the game is actually played by several distributors. Especially in my country, I see the government starting to think about price stability in the market by controlling the price of goods more stable, especially during big celebrations because usually the price of goods increases significantly in such conditions.
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January 28, 2025, 08:30:48 PM
 #4

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
In my country, a businessman sponsored a political party for the presidential elections. When the party won the elections they came up with policies that ended up pushing competitors out of business, thereby making their sponsor enjoy a monopoly. Political affiliation can cause monopoly.

Other causes could be tribalism, religious fanatism and international influence. Some governments will want people of the same religion or tribe as them to take over most businesses. Some powerful nations could also force the government of a weak nation to give some multinational certain privileges to dominate the market.

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January 28, 2025, 08:44:18 PM
Last edit: February 03, 2025, 04:58:35 PM by AmoreJaz
 #5

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
In my country, a businessman sponsored a political party for the presidential elections. When the party won the elections they came up with policies that ended up pushing competitors out of business, thereby making their sponsor enjoy a monopoly. Political affiliation can cause monopoly.

Other causes could be tribalism, religious fanatism and international influence. Some governments will want people of the same religion or tribe as them to take over most businesses. Some powerful nations could also force the government of a weak nation to give some multinational certain privileges to dominate the market.

Those instances that you have mentioned are really happening especially in most corrupt countries. I believe we won't eradicate such practice as long as there are politicians who will accept bribery.

Aside from that there are other reasons such as hoarding of scarce resources (just like what we have experienced during the pandemic period - some of the sellers did increase their price esp for staple commodities), and those who are holding their intellectual property rights. If such entity or organization have that IPR, they can surely sue other companies that will produce the same product. Hence, creating monopoly for certain products or services.

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January 28, 2025, 08:57:20 PM
 #6


The government does not monopolize the market but controls prices to make them more stable, but the game is actually played by several distributors. Especially in my country, I see the government starting to think about price stability in the market by controlling the price of goods more stable, especially during big celebrations because usually the price of goods increases significantly in such conditions.
The government might not do monopolization directly but they do monopoly indirectly. In most countries these days the government supports some certain producer's of major commodities so as these products gain monopoly in the market. These producer's have a collaboration with the government. It seems like the government comes out in the open to make some publications against monopoly but there are no form of enforcements backing up these publications, because they also  have their benefits from these companies. The government in such case's do not support other producer's of that same product rather makes excuses why the others should not be in circulation.

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January 29, 2025, 07:15:35 AM
 #7

The government might not do monopolization directly but they do monopoly indirectly. In most countries these days the government supports some certain producer's of major commodities so as these products gain monopoly in the market. These producer's have a collaboration with the government. It seems like the government comes out in the open to make some publications against monopoly but there are no form of enforcements backing up these publications, because they also  have their benefits from these companies. The government in such case's do not support other producer's of that same product rather makes excuses why the others should not be in circulation.
I don't think so because maybe we assume too much unless the government is corrupt which indeed has no basis for developing the country to be more developed. The actions taken are clear because those who violate will be given sanctions although not all those who are guilty will be punished, but if you look at the performance of the government I think this sector is a little better, especially in the country where I live. Even if there is a government that cooperates with producers, it is only a small part that is done by individuals because we cannot say all of it.

For law enforcement, it may not be fully maximized, but what the government has done is also a little better. Now, how can this awareness be raised among producers so that they do not monopolize the prices of goods according to their interests in making a profit.
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January 29, 2025, 11:50:38 AM
 #8

I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
even though there are obvious indicators that shows that allowing just a single person gain dominance over the market is always not the best of decision, there are times when such is allowed to thrive basically because there is no better alternative, and the individual is the only source that has the resource to invest into such a sector.

most times what the government does is to collaborate with an individual or company that has the capacity of championing certain sector rather than allowing it lie dormant because of the lack of funding on the part of the government that can go into that sector. a commission is given to the government which helps in the generation of more revenue that can serve public function. the negative implication is that the individual or company might have control over the market, but they also contribute their own quatre to the market and make it viable for others that would want to tag along to benefit from. generally, it takes money to make more money, and rather than just looking at the negative side of a monopolistic market, the opportunity it presents to others that are able to tag along is equally enormous.

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January 29, 2025, 12:10:34 PM
 #9

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
OP, from the content of your write-up, you can see that government are the ones to be held responsible for any monopolistic market in a given society. There is no economy in the world that seeks to be stable that would encourage Monopoly, because first it kills the spirit of fair competition among pairs, and is one-way driven because prices of goods coming from a certain angle are not questionable as their prices remains static. So at the end of the day, you can see that government causes Monopoly and for their not to be any form of Monopoly there should be a free market for all with regular checks and balances.











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January 29, 2025, 12:31:16 PM
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 #10

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.

Innovation can cause market monopolization. Certain companies can create and/or buy patents for certain inventions, which gives them a monopoly over certain technologies and industries. The "big tech" and "big pharma" corporations are examples of this, even though they cannot be classified as a monopolies.
The government can give privileges and subsidies to certain companies, in order to preserve a country's advantage in certain industries(and to prevent unemployment and deindustrialization). This doesn't classify as monopolization, but it's pretty close, if you ask me.
The "natural monopoly" in certain sectors of the economy is a topic for another discussion.

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January 29, 2025, 03:15:44 PM
 #11

Well, the system is built in ways that favor mostly the obedient or the followers of its standard whether good or bad. Besides, the monopolists are really connected to the top system echelon, or are well controlled by it. It's basically why governments want to own and run businesses or companies. It makes their agenda easy to implement and stir the businesses to the direction they want.

One of the solutions to this would be to form a parallel system that is just or fair. The members will patronize each other and have a better law that governs the system otherwise the opposite system will see reason to hijack it, shut it down or frustrate it.


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January 29, 2025, 07:12:06 PM
 #12

Innovation can cause market monopolization. Certain companies can create and/or buy patents for certain inventions, which gives them a monopoly over certain technologies and industries. The "big tech" and "big pharma" corporations are examples of this, even though they cannot be classified as a monopolies.
The government can give privileges and subsidies to certain companies, in order to preserve a country's advantage in certain industries(and to prevent unemployment and deindustrialization). This doesn't classify as monopolization, but it's pretty close, if you ask me.
The "natural monopoly" in certain sectors of the economy is a topic for another discussion.

And aside innovation most of this companies have the money to expand and people don't even have a choice than start monopolizing because they have the resources to do so and if you look at they always want to dominate all the sector and they will want to control everything. And each country have there own business people that are after been a monopolist and some people are just obsessed with Power and the only people that are suppose to be in control of everything is the government but they are no longer doing what they are suppose to do and that is why this companies are taking over I hope they don't latter over thrown the government because if they give to much power to those companies the government might not have anything under them again to control but they don't even seems to care.











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January 29, 2025, 08:08:00 PM
 #13

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
In my country, a businessman sponsored a political party for the presidential elections. When the party won the elections they came up with policies that ended up pushing competitors out of business, thereby making their sponsor enjoy a monopoly. Political affiliation can cause monopoly.

Other causes could be tribalism, religious fanatism and international influence. Some governments will want people of the same religion or tribe as them to take over most businesses. Some powerful nations could also force the government of a weak nation to give some multinational certain privileges to dominate the market.
This kind of thing will be common for a country that is indeed a corrupt country where policies, regulations and whatever will be made easier for those who have played a role in an election or supporter of someone so that in this case, returning the favor becomes an obligation that must be carried out by those who are elected.

Actually, something like this is quite taboo to be told clearly but it cannot be denied that something like this always becomes a condition where it has become an open secret for several groups, especially those who are in power and do it corruptly.

I don't want to talk about other countries in this case because in essence, my country is now doing the same thing where there are still a lot of politics of returning the favor or making policies that benefit one group just because they don't want to lose their position after they get it with results that are not too good from the start.

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January 29, 2025, 09:06:22 PM
 #14

In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.

How often do you see monopoly in the country. In my own experience, I have seen two system of monopoly as I grew up in the system of the government.

The first one is there is always one guy that is always the richest person in the country and he is always neutral when it comes to any candidates during election but after investigating on the low and see the best candidates that is going to win the election, he turn to that person and fund some part of his election and in return when the person get to the office, he gets some presidential treatment to get be able to monopolize his business in the country and also the government get some part of the shares.

The other is a rich man who get into politics, win the election and then make another person continue his business, by the time they get to the government, they use their influence to make the other person to enforce their business into the economy allowing one particular product to be supply, enriching their businesses while eating money of their political dream.

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January 29, 2025, 10:54:35 PM
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In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.
Market monopoly isnt a good thing most especially in a civilized society, such shouldn't even exist, but then, it exist due to several factors, some of such factors includes, but not limited to..

1. Greed
2. Power

Greed: greed can be a key factor leading to market monopoly in the sense that if a group of persons (like wholesalers) are greedy and are overpricing a product, the government can be forced to take over the pricing of that product, thereby controlling it - this leads to that particular product being monoplized.

Power: on the other hand, leads to market monopoly in the sense that if a sitting government is one that is desperate and power hungry, this can lead them to want to have control over everything including the prices of goods and products in the market.

It is often better to allow the market to flow freely, as in a monopolized system, things come crashing really bad when ever the power-that-be loses their grip, doesn't always end well for the society involved.
While these two are definitely some main reasons why market monopolization exists, however there are still ways on how to reduce market monopolization, since completely getting rid of it is way hardly impossible.

If we can promote market entry and encourage innovations both from small and big businesses, then we can lead some equality and reduce dominance of highly powered businessmen. Develop consumer awareness and advocacy which will educate most particularly the small businesses that there is no good for market monopolization but it only brings harm to the market and the people themselves.
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January 29, 2025, 11:59:57 PM
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The traditional route is via government and license deliberately to reinforce an industry they are given a monopoly on purpose.   This has happen as recently as only a few decades ago such as the aviation industry in some countries.   Some laws still exist to favor the home industry over any open competition and that idea is quite common.

Years ago royal charter would hand an entire sector to those favored by royalty and this allocation of power was seen as best to bring under control the national interest.

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January 30, 2025, 05:00:16 AM
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In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market system and it happens that once they hike prices of some products they impose it to buyer without proper system management.I think in my own opinion, it is not ideal to allow anybody to monopolize the market system irrespective of his/her social status,so that we can have fair economic system.

Innovation can cause market monopolization. Certain companies can create and/or buy patents for certain inventions, which gives them a monopoly over certain technologies and industries. The "big tech" and "big pharma" corporations are examples of this, even though they cannot be classified as a monopolies.

this is why I think a patent should only valid for no more than a decade to prevent monopoly, but on the other hand this kind of regulation will demotivate the big pharma to put more funding into their R&D and as a result, stalled innovation, it's overall a complex topic to discuss when it come to monopoly because it can happen and caused by many factors.

it's a good thing that some countries actually impose a rule to prevent monopoly from happening, I still remember the case of spotify vs apple and that was bad.
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January 30, 2025, 01:53:35 PM
Last edit: February 17, 2025, 08:32:14 AM by Jimboishere
 #18

If we look at stuff like Amazon - they have a very "legal" strategy of getting their competitors out: they can afford to have losses in a specific niche, since they are extremely diverse. Imagine a giant like Amazon demping prices if your niche for 3-6-12 months in a row on top of offering better delivery and everything. You will either go to Amazon and join 'em or go out of business. Small loss for Amazon a long-term domination on every niche they decide to strategically target. Some of the brands also kinda "forced" into stuff like promos and amazon vine ( https://webycorp.com/glossary/amazon-advertising/what-is-amazon-vine-program/ ) to promote their products, or they can't compete at all
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January 30, 2025, 02:29:20 PM
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In a civilize society,there are ways in which investors regulate market price,they’ll be the one to determine how the economy market will look like.In recent time,i notice that government has play a favoritism role with the policies they made,so as to make a particular person to influence the market

monopolization of the country is always the work of bad people in the government for favouring only one person to supply alone, although one of the major cause of this in my understanding is that during campaigning for election a lot of business persons who are guru in the business sector of the country will start making donations for the candidate they feel will succeed, so that in return he will be given power over other business competitors, that's why you see that kind of business monopolization because for road construction I have seen few companies who are into the business but only one is always doing the government road construction projects while others who knows the business well are neglected. So actually if monopolization is done on government they shouldn't extend it the business sector because people can bear the undemocratic rules but cannot bear the business monopolization.

 
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January 30, 2025, 08:22:34 PM
 #20

In my country, a businessman sponsored a political party for the presidential elections. When the party won the elections they came up with policies that ended up pushing competitors out of business, thereby making their sponsor enjoy a monopoly. Political affiliation can cause monopoly.

Other causes could be tribalism, religious fanatism and international influence. Some governments will want people of the same religion or tribe as them to take over most businesses. Some powerful nations could also force the government of a weak nation to give some multinational certain privileges to dominate the market.
Mostly Third World countries are facing problems like these because there system is weak and few peoples are greater which can control and take good advantage due to lack of education and not good facilities of other which are important for common peoples they usually suffer and not able to take any stand.

Tribalism and religious affairs are the most terrible things happening around these developing countries because just because of these millions of peoples suffer and also lost their lives and properties as well, but it's not stoppable because monopolization working and big players taking their share from this. While now world is getting huge industrial and technological revolutions many countries are still failed to provide basic things because they are controlled by few peoples those never want to give this.
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