Critical Response
Linda S. Ghent, Professor in the Department of Economics at Eastern Illinois University, discusses this episode in terms of its dramatization of the economic issue of market power. The Soup Nazi has monopoly power because he has the power to alter the market price of the goods and services he sells, such as charging George $2, and then $3, for bread. The soup seller is free to practice price discrimination against George and can banish Elaine from his restaurant because he doesn't like her attitude. Because the Soup Nazi's soup is so good, his reign over New York's soup is powerful to the point that his customers prefer his market, and even his abuse, rather than seek soup elsewhere. Elaine breaks his monopoly when she finds his recipes.
Read more about this topic: The Soup Nazi
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