Government Regulation of Competitive Firms Creates Monopolies

Government Regulation of Competitive Firms Creates Monopolies
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Frank Shostak
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Commentary

Monopolies are believed to undermine individuals’ well-being, including being the cause of large increases in the prices of goods and services. According to Jean Tirole, the 2014 Nobel Prize winner in economics, monopolies undermine the efficient functioning of the market economy by influencing the prices and the quantity of products, making consumers worse off.

Frank Shostak
Frank Shostak
Author
Frank Shostak, Ph.D., is an associated scholar of the Mises Institute. His consulting firm, Applied Austrian School Economics, provides in-depth assessments and reports of financial markets and global economies. He has taught at the University of Pretoria and the Graduate Business School at Witwatersrand University.