With no consumer choice, companies have pricing power.
Enter the background of the argument here ...
Countless studies show that monopolies lead to higher prices when a strong company faces off against diffuse consumers. The evidence is laid out The Myth of Capitalism: Monopolies and the Death of Competition. Also, John Kwoka has done metastudies of mergers and shown that prices tend to rise when industries move below six major players. (In some cases monopolies may lower prices when monopolies abuse their market power to squeeze suppliers.)
Enter the counter arguments here ...
Enter the formal premises of the argument here ...
Enter the technical rejections of the premises here ...
Content references here ...
Sign up or log in to record your thoughts on this argument