1, franchise:
Some exclusive franchise privileges are stipulated and protected by law, and patent rights and copyrights are monopolies permitted by law. In order to encourage invention, most countries have patent laws, which shows that patent monopoly is caused by legal barriers. In some cases, the government grants exclusive rights to manufacturers; Sometimes the government grants the privilege of exclusive operation by bidding for contracts after competition.
2. Natural monopoly:
If a product needs a lot of fixed equipment investment, and mass production can greatly reduce the cost, then a large manufacturer may become the only manufacturer in the industry. When a large manufacturer supplies all the market demand, the average cost is the lowest, and it is difficult for two or more manufacturers to make a profit in this market. In this case, the manufacturer has formed a natural monopoly.
3. Strategic monopoly:
If no one has certain production technology or know-how except monopolists, the market will naturally form a technological monopoly. In the absence of technical barriers and legal barriers, manufacturers build barriers to establish or consolidate their monopoly position, which is strategic monopoly.
4. Other monopoly barriers:
The above obstacles are not exhaustive, nor are they necessarily mutually exclusive. If the manufacturer controls the supply of a certain raw material. Any barrier that prevents competitors from entering the market is the cause of monopoly.
Extended data:
Harm of monopoly:
Monopoly and competition are inherently contradictory. Due to the lack of competitive pressure and development motivation, coupled with the lack of strong external control and supervision mechanism, the service quality of monopoly industries is often unsatisfactory, which often violates market rules and infringes on consumers' fair trading rights and choice rights. This is a rule, both in China and abroad.
Price monopoly has increased the cost of the whole society. Monopoly industries are generally engaged in public utilities closely related to most people and industries, such as telecommunications, postal services, tap water, electricity, gas, railways and aviation. Because these industries penetrate into all aspects of society, the service prices of these industries are 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 era of planned economy, telecommunications, railways and other departments used to belong to the state administrative departments, but after entering the market, they are still in a monopoly position. Once they begin to pursue profits in the market, they will transfer a large number of consumer interests to their hands through monopoly pricing, so that privileged departments and privileged companies can obtain profits far higher than the competitive market price. In this way, the competitive cost of the whole society will increase. ?
References:
Baidu encyclopedia-monopoly