|Overview: Coercive Monopoly|
|Definition||A firm that prevents others from competing in a market using extraordinary power such as government intervention.|
|Related Techniques||Natural MonopolyBarriers To EntryMonopsony|
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What is a Coercive Monopoly?
John Spacey, updated on December 07, 2016
A coercive monopoly is a monopoly position in a market that is obtained by preventing any firms from competing using extraordinary power such as government policy. As coercive monopolies don't achieve their position by competitive means such as efficiency or innovation, they are considered particularly damaging to economic efficiency.
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