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Old March 10th, 2011, 06:13 PM   #28
Alex
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Name: 1 guess :-)
Location: SF Bay Area
Join Date: Jun 2008

Motorcycle(s): '13 Ninja 300 (white, the fastest color!), '13 R1200RT, '14 CRF250L, '12 TT-R125LE

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While their are certainly instances of non-competitive pricing, monopolies aren't nearly as common as people think. What it comes down to is barrier to entry. If there are a very small number of companies owning the whole market, and if it's almost impossible for newcomers in that market due to fundamental issues, and there is motivation for those few companies to match pricing (either intentionally or unintentionally), well, there's an interesting discussion about a monopoly/duopoly/oligopoly.

The fact by itself that there are only a few companies doing X, whatever X is, doesn't mean that there is a monopoly by any stretch. It could just mean there isn't nearly enough profit in X to attract any investment or additional organizations chasing that profit. For many products, that happens to be the case.
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