Monopoly power is an example of market failure which occurs when one or more of the participants has the ability to influence the price or other outcomes in some general or specialized market. The most commonly discussed form of market power is that of a monopoly, but other forms such as monopsony, and more moderate versions of these two extremes, exist.
A well known example of monopolistic market power is Microsoft's market share in PC operating systems. The United States v. Microsoft case dealt with an allegation that Microsoft illegally exercised its market power by bundling its web browser with its operating system. In this respect, the notion of dominance and dominant position in EU Antitrust Law is a strictly related aspect.
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Famous quotes containing the words monopoly and/or power:
“United Fruit... United Thieves Company... it’s a monopoly ... if you won’t take their prices they let your limes rot on the wharf; it’s a monopoly. You boys are working for a bunch of thieves, but I know it ain’t your fault.”
—John Dos Passos (1896–1970)
“The open frontier, the hardships of homesteading from scratch, the wealth of natural resources, the whole vast challenge of a continent waiting to be exploited, combined to produce a prevailing materialism and an American drive bent as much, if not more, on money, property, and power than was true of the Old World from which we had fled.”
—Barbara Tuchman (1912–1989)