Monopoly is generally divided into seller monopoly and buyer monopoly, leading to the formation of monopoly there are many factors, the following is the reason why I organize the formation of monopoly answer for you, I hope it will help you!
Causes of Monopoly Formation
It is generally accepted that the basic cause of monopoly is barriers to entry, that is, a monopoly vendor can maintain the position of the only seller in its market because other firms cannot enter the market and compete with it.
Monopoly refers to an association of a few large capitalists for the purpose of *** together controlling the production, distribution and business activities of a particular sector or sectors in order to obtain high monopoly profits. It is the deepest economic foundation of imperialism and the economic essence of imperialism.
Monopoly grows out of government protectionist free competition. In the stage of capitalist development characterized by free competition, capitalist enterprises, in order to seize more surplus value, are bound to adopt advanced production technology and scientific management methods, to carry out production specialization and collaboration, and to increase labor productivity; in the fierce competition, large enterprises often rely on their own advantages in the economy, and constantly crowd out and annex small and medium-sized enterprises, so that the means of production, labor force, and labor The production of means of production, labor force and labor products are increasingly concentrated in their own hands. At the same time, the development of the capitalist credit system and joint-stock companies has broken through the limitations of individual capital and accelerated the development of capital concentration, thus also promoting the development of production concentration. The development of the concentration of production and capital to a certain extent means that the number of enterprises is reduced, and most of the production of a sector is concentrated in the hands of a few or dozens of large enterprises, and it is relatively easy for them to reach agreement among themselves to * * * the same manipulation of sectoral production and sales, thus making the emergence of monopoly possible; due to the existence of a small number of large enterprises, so that small and medium-sized enterprises are in a dominated position, and a few large enterprises in order to avoid losing both sides of the competition, to ensure that they can not compete with each other. In order to avoid losing both sides in the competition, to ensure that each other are profitable, will also seek a temporary compromise, to reach a certain agreement, so that the emergence of monopoly has the necessity. Free competition gives rise to concentration of production, and concentration of production develops to a certain extent inevitably towards monopoly, is the general, basic law of the development of free competition capitalism to the stage of monopoly capitalism. At the end of the 19th century and the beginning of the 20th century A.D., monopoly has become the basis of the entire economic life of capitalism.
In the process of the development of the capitalist economy, free competition gives rise to the concentration of production, and the concentration of production develops to a certain stage and inevitably gives rise to monopoly. When monopoly replaces free competition and dominates economic life, capitalism develops to the stage of imperialism, i.e., monopoly capitalism.
There are three main reasons for the formation of monopoly:
Natural monopoly: The cost of production makes one producer more efficient than a large number of producers. This is the most common form of monopoly.
Resource monopoly: key resources are owned by a single firm (e.g., the dubbing industry for wireless television).
Administrative monopoly: The government gives a firm the exclusive right to produce a certain product or service.
There are also monopolies by the government itself, called monopolies.
Types of MonopoliesConcessionary Monopolies
Some exclusive privileges are defined and protected by law, and patents and copyrights are monopolies licensed by law. In order to encourage creativity and invention, the vast majority of countries have enacted patent laws, so it can be seen that the patent monopoly is caused by legal barriers. On some occasions, the government grants exclusive rights to a manufacturer; sometimes the government grants exclusive privileges in the form of contracts after bidding competition.
Natural Monopoly
If a product requires a large investment in fixed equipment, and large-scale production can make it much cheaper, then a large manufacturer may be the only producer in the industry. The average cost of supplying the entire market demand by a single large manufacturer is lowest, and it is difficult for two or more manufacturers to operate profitably in that market, in which case that manufacturer forms a natural monopoly.
Strategic monopoly
If no one other than the monopolist possesses a certain production technology or know-how, the market naturally forms a technical monopoly. In the absence of either technical or legal barriers, a strategic monopoly is one in which the manufacturer builds up barriers to establish or consolidate its monopoly position.
Other monopoly barriers
The above barriers are not exhaustive and are not necessarily mutually exclusive. For example, a manufacturer controls the supply of a certain raw material. Any barrier that prevents competitors from entering the market is a cause of monopoly.
The harm of monopolyMonopoly and competition are inherently a pair of contradictions, due to the lack of competitive pressure and development momentum, coupled with the lack of strong external constraints on the monitoring mechanism, the monopoly industry's quality of service is often difficult to satisfy, and often violates the laws of the market, violating the right of consumers to a fair trade and the right to choose. This is a law, China and foreign countries are the same.
Price monopoly pulls up the cost of the whole society monopoly industry engaged in the general is closely related to the majority of people, industry, public **** business, such as telecommunications, postal services, water, electricity, gas, railroads, aviation and so on. Because these industries permeate all aspects of society, so the price of services in these industries is related to the cost of the whole society. The overall efficiency of these industries is directly related to the ability of other industries to participate in international competition.
In the planned economy era, telecommunications, railroads and other sectors used to belong to the state administration, but when these sectors enter the market, they themselves still have a monopoly position, and once they start to pursue profits in the market, they will transfer a large number of consumer benefits through monopoly pricing into the hands of the privileged sector, the privileged company to get far higher than the price of the competing market profits. The result raises the cost of competition for society as a whole.
Industry monopoly leads to effective underinvestment
According to industry sources, the current approval of the private courier companies in Beijing, Shanghai and Shenzhen have dozens of, but the underground? The black market? The number of courier companies is more than 1,000. Although in accordance with the provisions of the country's "Postal Law", letters and other items with the nature of the letter delivery business by the state-owned postal enterprises, but many courier companies are also in various forms of participation in this service, according to statistics, EMS is currently the lowest tariff is 23.3 yuan, while the lowest tariffs of the private courier companies, but the minimum tariffs of about 10 yuan. Excess profits are bound to attract funds, even if the companies are less legitimate. According to statistics, since 1995, EMS has also seen an annual growth rate of 2% in turnover, but its market share has been declining at a rate of 4% per year. During the same period, the four international courier giants' turnover growth in China has remained above 20%. Although EMS is still the biggest player in the domestic courier market, it is still the biggest player in the domestic courier market. Big Brother?
This phenomenon is common in monopolized industries. On the one hand, monopolies can make excessive profits through monopoly, which prevents them from improving efficiency and expanding their business scale. In addition through the industry monopoly to prevent social capital to enter the industry, although there is always money for profit lure through various ways? Illegal? The company has been able to get a lot of money into the industry, but the scale is always limited.
Insufficient investment, declining employment, and relatively weak consumption are the main problems in China's economic operation. Some experts pointed out that China's current stage of underinvestment for many reasons, but one of the points is that many high-profit industries are prohibited from entering the market monopoly industries, these industries, the monopoly leads to inefficiency, resulting in this part of the profit does not reflect the real profit situation, become a great waste of money, which also greatly dampens the enthusiasm of capital investment, which results in what is known as the "Capital Strike". Capital strike? , reinforcing the investment market downturn.
Administrative monopoly breeds corruption
In the current domestic market, a large number of monopoly behavior, administrative monopoly undoubtedly occupies the primary position. By the government and its subordinate departments abuse of administrative power to implement the restriction of competition behavior, known as ? administrative monopoly? Administrative monopoly due to the intervention of administrative power, making it more harmful than natural monopoly, industry monopoly on fair competition in the market, especially a small number of corrupt people use with the power of public **** affairs management, if ? Give money? to do things, the monopoly has become a hotbed of corruption, which not only affects economic development, but more importantly, the government's credit has been damaged, a loss of trust in the operator.
The findings of domestic research institutions show that one of the important manifestations of corruption in the current is caused by the monopoly of a large amount of rent (here is the economic sense of ? Rent?) loss. For example, the electricity industry, one of China's largest monopolies, according to their estimates, causes an annual loss of rent of between 56 billion yuan and 112 billion yuan, while the monopoly of civil aviation? rents? also amounts to as much as 7.5 billion to 10 billion yuan a year. Monopolization transfers consumer gains to monopoly producers, creating excess profits and resulting in social welfare losses. It is estimated that such losses amount to $130 billion to $202 billion a year.
Measures to deal with monopolizationEstablishment of basic antitrust principles
(1) Principle of maintaining fair competition. The state should formulate corresponding industrial development policies in all fields of production and service except strategic fields such as military and national security, which are of great importance to national economy and people's livelihood, and comprehensively introduce the mechanism of fair competition, so that administrative monopoly can be eliminated in competition, the overall management, technology, quality and efficiency of the society can be comprehensively improved on the basis of fair competition, and the healthy, sustained and rapid development of the socialist market economy can be supported by a good system. The system will be supported.
(2) Focus on targeting and progressivity. Formulate laws and regulations to regulate and facilitate the supervision of various business behaviors of industries and sectors, such as business system and decision-making, procurement, service, pricing and internal distribution, etc.; solve the non-risk and non-payment of corporate and personal income generated by monopoly privileges through taxation; set up an anti-monopoly law enforcement agency with a high degree of authority and independence, and be responsible for establishing a law enforcement agency based on the phenomena reflected by authoritative public opinion surveys and news media, which will be responsible for the enforcement of anti-monopoly law and regulations. The establishment of a highly authoritative and independent anti-monopoly enforcement agency is responsible for investigating and handling monopoly violations based on the phenomena reflected by authoritative social opinion pollsters and the news media, and giving priority to solving the hot and difficult monopoly-related problems reflected by the general public and accepting social supervision. Among them, the standardization of behavior is the focus, organizational construction is the key, step by step is the strategy, fair supervision is the way.
Improving Institutional Setup
On the one hand, the Administration for Industry and Commerce (AIC) is the main enforcement agency for anti-monopoly in China. However, as the main body of China's market supervision, the AIC is responsible for many tasks such as enterprise registration, trademark and advertisement management, and consumer rights protection, etc. Moreover, it is often difficult for the AIC to effectively investigate and deal with administrative monopolies due to the constraints of legal authorization on its law enforcement efforts.
On the other hand, the cross-functional and multi-disciplinary phenomenon that still exists among China's existing market regulators often leads to inconsistent enforcement and duplicative interventions, and therefore, relying on the Administration for Industry and Commerce (AIC) to push forward with the concrete implementation of anti-monopoly is detrimental to the fairness, authority, and uniformity of China's anti-monopoly law enforcement. For this reason, it is recommended that China learn from the anti-monopoly experience of developed countries in the Western market economy and set up an anti-monopoly enforcement agency with a high degree of authoritativeness, independence and fairness, with impartial and honest legal experts and economists as the core members.
To give full play to the advantages of China's socialist market economy system, implement strong macro-control and compulsory intervention in the stubborn stone of monopoly, so as to truly and completely cure the economy since China's reform and opening up? The stubborn disease?
Improve the legal system
Improve the Anti-Monopoly Law, encourage competition in the complete law, and establish a fair market competition mechanism
Promote? separation of government and enterprises? The separation of government and supervision is a key element in the development of the country's economy.
Eliminate the administrative monopoly of the remnants of the traditional system
.