[UncleEntity]

> Monopolies are never good for markets, pretty much but definition. Regulated monopolies, such as utility companies, are sometimes good for consumers though.

I actually have the exact opposite opinion, natural monopolies are good for the market while government granted monopolies are not.

Natural monopolies (i.e., ones not protected by fiat) gained their position through being the best in that space and there's nothing to stop competitors from overthrowing them if they lose their way while the opposite is far from true -- try to overthrow a gov't granted monopoly and you end up in court for patent (or whatever) infringement.

[smolder]

Natural monopolies in any sizable market don't stay natural. They get their fingers in government or use their relative size in a legal system that favors money to create unreasonable barriers to entry. Once they make it to #1 they no longer have to be the best. Same goes for markets run by a duopoly or any number of entities that cooperate in some way to lower competition.

[hellogoodbyeeee]

You want utility companies to be a regulated monopoly because of their economies of scale. Consumers would be worse off with two small electric companies because their per unit of electrical price would be higher. Competition can't price away the fixed costs of building a power plant or stringing electrical wires all over town. However the monopoly has pricing power and needs the government regulation to prevent it from unfairly raising prices for consumers like they would to maximize profit without the regulation.

Natural monopolies are bad because they can use their market position to unfairly prevent new entrants to the market. For example, Amazon may buy all of a key supplier's product and prevent the upstart from even having a chance because they can't buy any of that product. The monopoly can raise prices to whatever level they want, despite what the market would dictate because the consumer doesn't have another alternative.

[cjbenedikt]

Hmmm....not sure about natural monopolies...think Amazon or Bloomberg...