Pseudo Monopolies

The author emphasizes the terms “precariousness” and “contestable” in an attempt to tell regulators and bureaucracies not to worry about Google, Microsoft, Apple, Facebook or other tech companies becoming monopolies. The two reasons he offers are:

1. They cannot act as monopolies without the consumers responding. The “precariousness” aspect of the argument.

2. Other companies/businesses exist. The “contestable” aspect.

Tim Worstall states that if any of these businesses do reach the monopoly position, they will still need to consider their customers and how much they will be willing and able to pay. Precarious means not securely held in position-which describes the state of any business, but applies to the ones listed above.

He also notices that there are many other less commonly named businesses that at every moment are looking to compete against these top businesses, which is why Google, Microsoft, Apple, and Facebook are unable to act as monopolies.

1 Comment »

  1. Nicky Tynan Said,

    November 7, 2012 @ 8:26 pm

    A good article for building on the class and text discussion of monopoly with a connection to technologies that most of us use on a daily basis.

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