monopoly

(noun)

A monopoly (from Greek monos μ (alone or single) + polein π (to sell)) exists when a specific person or enterprise is the only supplier of a particular commodity (this contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly which consists of a few entities dominating an industry). Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods.

Related Terms

  • Antitrust Law
  • Robber baron
  • captains of industry
  • Sherman Antitrust Act of 1890
  • trust

(noun)

A situation, by legal privilege or other agreement, in which solely one party (company, cartel etc. ) exclusively provides a particular product or service, dominating that market and generally exerting powerful control over it.

Related Terms

  • Antitrust Law
  • Robber baron
  • captains of industry
  • Sherman Antitrust Act of 1890
  • trust

Examples of monopoly in the following topics:

  • Regulation

    • Pro-labor Progressives, such as Samuel Gompers, argued that industrial monopolies were unnatural economic institutions that suppressed the competition that was necessary for progress and improvement.
    • United States antitrust law is the body of laws that prohibits anticompetitive behavior (monopolies) and unfair business practices.
    • Progressives, such as Benjamin Parke De Witt, argued that in a modern economy, large corporations, and even monopolies, were both inevitable and desirable.
    • "Innocent monopoly," or monopoly achieved solely by merit, is perfectly legal, but acts by a monopolist to artificially preserve that status, or nefarious dealings to create a monopoly, are not.
    • Not all big companies, and not all monopolies, are evil; and the courts (not the executive branch) are to make that decision.
  • Anti-Trust Laws

    • This legislation fulfilled both the Progressive aims of Roosevelt and Taft while deviating from their approach to breaking monopolies.
    • Wilson deviated from his presidential predecessors, who relied on lawsuits to break trusts and monopolies, by founding a new trustbusting approach through encouraging competition through the Federal Trade Commission.
    • Rather than the piecemeal success of Roosevelt and Taft in targeting certain trusts and monopolies in lengthy lawsuits, the Clayton Antitrust Act effectively defined unfair business practices and created a common code of sanctioned business activity.
  • From Competition to Consolidation

    • Within a decade, the Cotton Trust, Lead Trust, Sugar Trust, and Whiskey Trust, along with oil, telephone, steel, and tobacco trusts, had become, or were in the process of becoming, monopolies.
    • In 1889, the new president, Republican Benjamin Harrison, condemned monopolies as "dangerous conspiracies" and called for legislation to remedy the tendency of monopolies that would "crush out" competition.
    • Senator Sherman and other sponsors declared that the act had roots in a common-law policy that frowned on monopolies.
    • To an extent, it did, but it added something quite important for the future of business and the US economy: the power of the federal government to enforce a national policy against monopoly and restraints of trade.
  • The Varieties of Progressivism

    • The pursuit of trust-busting (breaking up very large monopolies) was chief among these aims, as was garnering support for labor unions, public health programs, decreased corruption in politics, and environmental conservation.
    • More, not less, regulation was necessary to ensure that society operated efficiently, and therefore, most Progressives believed that the federal government was the only suitable power to combat trusts, monopolies, poverty, deficits in education, and economic problems.
    • Pro-labor Progressives such as Samuel Gompers argued that industrial monopolies were unnatural economic institutions that suppressed the competition necessary for progress and improvement.
    • U.S. antitrust law is the body of laws that prohibits anti-competitive behavior (monopolies) and unfair business practices.
    • Progressives such as Benjamin Parke DeWitt argued that in a modern economy, large corporations and even monopolies were both inevitable and desirable.
  • Robber Barons and the Captains of Industry

    • Within a decade, the Cotton Trust, Lead Trust, Sugar Trust, and Whiskey Trust—along with oil, telephone, steel, and tobacco trusts—had become, or were in the process of becoming, monopolies.
    • In 1889, the new president, Republican Benjamin Harrison, condemned monopolies as "dangerous conspiracies" and called for legislation to address the tendency of monopolies to "crush out" competition.
    • Senator Sherman and other sponsors declared that the act had roots in a common-law policy that frowned on monopolies.
    • To an extent, it did, but it added something quite important for the future of business and the U.S. economy: the power of the federal government to enforce a national policy against monopoly and restraints of trade.
  • The Transformation of Law

    • Ogden in 1824, in which Marshall overturned a monopoly granted by the New York state legislature to steamships operating between New York and New Jersey.
    • The immediate impact of this historic decision was to end many state-granted monopolies.
  • Rockefeller and the Oil Industry

    • In 1890, Congress passed the Sherman Antitrust Act — the source of all American anti-monopoly laws.
    • In 1909, the US Department of Justice sued Standard under federal anti-trust law, the Sherman Antitrust Act of 1890, for sustaining a monopoly and restraining interstate commerce.
    • On May 15, 1911, the US Supreme Court upheld the lower court judgment and declared the Standard Oil group to be an "unreasonable" monopoly under the Sherman Antitrust Act.
  • Gibbons v. Ogden

    • The decision overturned the New York state legislature's monopoly over certain steamships operating between New York and New Jersey.
    • He held that it was a legitimate exercise of congressional power regulating interstate commerce, and therefore superseded the state law allowing the monopoly.
    • The immediate impact of Gibbons resulted in the end of many state-granted monopolies.
  • Roosevelt's Progressivism

    • While president, Roosevelt targeted these trusts, particularly the railroad monopolies, by increasing the regulatory power of the federal government through the Elkins Act (1903) and the Hepburn Act (1906).
    • Under Roosevelt's leadership, the attorney general brought 44 suits against business monopolies (most notably against J.P.
    • Roosevelt's successful campaign against corporate monopolies earned him the nickname "Trust Buster."
  • Wilsonian Progressivism

    • This legislation fulfilled both the Progressive aims of Roosevelt and Taft while deviating from their approach to breaking monopolies.
    • Wilson deviated from his presidential predecessors, who relied on lawsuits to break trusts and monopolies, by founding a new trustbusting approach through encouraging competition through the Federal Trade Commission.
    • Rather than the piecemeal success of Roosevelt and Taft in targeting certain trusts and monopolies in lengthy lawsuits, the Clayton Antitrust Act effectively defined unfair business practices and created a common code of sanctioned business activity.
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