Think of the popular board game Monopoly. What is the
purpose of the game? Buy properties, and earn a profit. By the end of the game,
whoever has the most money, wins. This is how real life Monopolies work. It’s
an exclusive possession or complete control of the supply or trade in a product
or service.
It is
possible for a Monopoly to be illegal. Some examples include Price Fixing,
Price Discrimination, Exclusive Dealings, Group Boycotts, and Tying Contracts.
Price fixing is where competitors settle with buying or selling products or
services at a fixed price, not to be confused with Price discrimination, which
is just where you sell similar products to buyers at altered prices. Exclusive
Dealings is requiring a buyer or seller to purchase or sell most, or all of a
certain product from a single supplier.
Group Boycotts are competitors agreeing to reject a certain entity. And
lastly, tying contracts are selling products or services on the condition that
the buyer comes to an agreement to also buy a different product or service as
well.
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