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monopoly

A Dictionary of Sociology | 1998 | | © A Dictionary of Sociology 1998, originally published by Oxford University Press 1998. (Hide copyright information) Copyright

monopoly In general terms, monopoly refers to exclusive possession or control of some resource by a single actor or group of actors. In an economic context, it refers to market concentration and imperfect competition; that is, the dominance by one firm of a particular commodity market which gives it the power to set prices, rather than be subjected to price competition with other firms. In real life, few markets are dominated by one firm alone; more common is domination by a small number of firms, a situation which is commonly referred to as oligopoly. Where two or more businesses reach a formal or informal agreement to limit competition among themselves, for example by fixing similar prices or agreeing separate marketing areas, they are said to form a cartel.

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GORDON MARSHALL. "monopoly." A Dictionary of Sociology. 1998. Encyclopedia.com. 13 Nov. 2009 <http://www.encyclopedia.com>.

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