“From the point of view of a producer, a monopoly is always great and competition is always terrible.” Is this really true? The producer can only experience monopoly gains in certain industries - like energy, for example - where consumers cannot switch to a different substitute for this good. Are m…

A monopoly producer simply can’t dictate the price of their product and assume it will clear. Ultimately the the clearing price is determined by what the aggregate of consumers are willing to pay. One of the main reasons why it is advantageous to be a monopoly producer is that the customers are pur…

The Austrian definition of monopoly differs from the mainstream one. Wikipedia on monopoly: A monopoly (from Greek monos μόνος (alone or single) + polein πωλεῖν (to sell)) exists when a specific person or enterprise is the only supplier of a particular commodity…Monopolies are thus characterized b…

Legal monopolies in specific industries are nice, especially when you get government to place barriers to entry on substitute goods as well. Even better if the government can force the public to buy your product.

A bird in the hand is better than two in the bush. Even if you could theoretically operate at a higher profit in a free market (which you probably couldn’t), you’re better off having a smaller guaranteed profit than a higher profit which may be lost to bankruptcy due to being out-competed by more ef…

While this result is likely to hold for monopolies in a single industry, it probably does not hold when you look at the entire free market. If there is a monopoly of all production under one agency, then the inefficiencies created could very well overshadow the monopoly profits the agency could earn…

@Wheylous : I think you’re touching on the central thesis of Mises’ impossibility argument: socialism is impossible because the pan-monopolist cannot calculate. In the process of implementing the pan-monopoly, he destroys the very basis of calculation, which is exchange. It’s not just about monetary …

It’s not just about monetary calculation, either, since it is possible to roughly calculate in terms of barter goods… certainly, two sheep are better than one sheep, ceteris paribus. The calculation problem is about how to produce at a profit, and once the economy is complex enough, two sheep are…

Reply to OP: They can be mediocre. Very specific conditions have to be met for a monopoly to make more money than under free market conditions. The quote from HA, Chapter 16, section 6: Monopoly is a prerequisite for the emergence of monopoly prices, but it is not the only prerequisite. There is…

Thinking of world governemnt as a monopoly of some type is sophomore. World governance will be much more than some monolithic world state. it will never look like a world state, ever.

A question about Hoppe's 'The Economics of World Government'

Economics Economics Questions

Smiling_Dave March 12, 2013, 8:26am 12

Have to revise what I wrote, based on new info [to me] contained in this thread:

https://forum.freecapitalists.org/t/mises-vs-rothbard-on-monopoly/21278

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A question about Hoppe's 'The Economics of World Government'

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