History of monopoly
Encyclopedia
The history of monopoly
pertains to the historical tendency of a successful commercial enterprise
to dominate an industry
. The practice started during Advanced Industrialization
with such companies as Standard Oil
and the Carnegie Steel Company
.
The Sherman Antitrust Act
was the first Federal statute to limit cartel
s and monopolies
, and today still forms the basis for most antitrust
litigation by the United States federal government.
Recently, companies such as Microsoft
have been accused by the U.S. Department of Justice
of the monopolistic practice of Embrace, extend and extinguish
. In addition, ExxonMobil
and several other corporations have been accused of monopolizing an industry and even crushing competition.
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
pertains to the historical tendency of a successful commercial enterprise
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
to dominate an industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
. The practice started during Advanced Industrialization
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...
with such companies as Standard Oil
Standard Oil
Standard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
and the Carnegie Steel Company
Carnegie Steel Company
Carnegie Steel Company was a steel producing company created by Andrew Carnegie to manage business at his steel mills in the Pittsburgh, Pennsylvania area in the late 19th century.-Creation:...
.
The Sherman Antitrust Act
Sherman Antitrust Act
The Sherman Antitrust Act requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of violating the Act. It was the first Federal statute to limit cartels and monopolies, and today still forms the basis for most antitrust litigation by...
was the first Federal statute to limit cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
s and monopolies
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
, and today still forms the basis for most antitrust
Antitrust
The United States antitrust law is a body of laws that prohibits anti-competitive behavior and unfair business practices. Antitrust laws are intended to encourage competition in the marketplace. These competition laws make illegal certain practices deemed to hurt businesses or consumers or both,...
litigation by the United States federal government.
Recently, companies such as Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...
have been accused by the U.S. Department of Justice
United States Department of Justice
The United States Department of Justice , is the United States federal executive department responsible for the enforcement of the law and administration of justice, equivalent to the justice or interior ministries of other countries.The Department is led by the Attorney General, who is nominated...
of the monopolistic practice of Embrace, extend and extinguish
Embrace, extend and extinguish
"Embrace, extend and extinguish," also known as "Embrace, extend and exterminate," is a phrase that the U.S. Department of Justice found was used internally by Microsoft to describe its strategy for entering product categories involving widely used standards, extending those standards with...
. In addition, ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
and several other corporations have been accused of monopolizing an industry and even crushing competition.
See also
- Monopolistic competitionMonopolistic competitionMonopolistic competition is imperfect competition where many competing producers sell products that are differentiated from one another...
- Complementary monopolyComplementary monopolyIn a complementary monopoly consent must be obtained from more than one agent in order to obtain the good. This effect was originally observered in . The leads to a reduction in surplus generated relative to an outright monopoly, if the two agents do not cooperate.This can be seen in private toll...
- DemonopolizationDemonopolizationDemonopolization means to break up an existing monopoly. It is often used in the context of breaking up a government-run monopoly.-Usage:*”Institutional Strengthening of the State Committee on Demonopolization and Competition Development”...
- DuopolyDuopolyA true duopoly is a specific type of oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market...
- MonopsonyMonopsonyIn economics, a monopsony is a market form in which only one buyer faces many sellers. It is an example of imperfect competition, similar to a monopoly, in which only one seller faces many buyers...
- Bilateral monopolyBilateral monopolyIn a bilateral monopoly there is both a monopoly and monopsony in the same market.In such, market price and output will be determined by forces like bargaining power of both buyer and seller...
- OligopolyOligopolyAn oligopoly is a market form in which a market or industry is dominated by a small number of sellers . The word is derived, by analogy with "monopoly", from the Greek ὀλίγοι "few" + πόλειν "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others...
- Sherman Antitrust ActSherman Antitrust ActThe Sherman Antitrust Act requires the United States federal government to investigate and pursue trusts, companies, and organizations suspected of violating the Act. It was the first Federal statute to limit cartels and monopolies, and today still forms the basis for most antitrust litigation by...