Timmy elsewhere

At the ASI.

What mastters about a monopoly is not whether it exists, but whether it is contestable….or, can it act like a monopoly or not?

With extra added rare earths goodness.

1 thought on “Timmy elsewhere”

  1. The effective distinction is between natural monopolies, which arise because one producer is so much more efficient than its competitors that it is able to earn an acceptable return on capital while selling at a price below their production cost, and government-ordered monopolies that do not have to worry about potential competition. One example of the former is BPB which in the 1970s moved from a near-monopoly of the UK market for plasterboard having driven its main rivals out of business to an actual monopoly when ICI, which had been making plasterboard as a by-product of cleaning up the exhaust from its chimneys decided that, following the switch to North sea Gas, the revenue from selling plasterboard did not cover the difference between the cost of making it and that of getting rid of the SO2 by other means. On the other side we have the Chinese tobacco monopoly or the Nordic alcohol monopolies.

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