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top   »  strategy   »  business strategy   »  competitive advantage   »  competition   »  monopoly   »  coercive monopoly

What is a Coercive Monopoly?

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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.
Overview: Coercive Monopoly
Type
Economics
Definition
A firm that prevents others from competing in a market using extraordinary power such as government intervention.
Related Techniques
Natural Monopoly
Barriers To Entry
Monopsony

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