Monopoly

From Wikispooks
Jump to navigation Jump to search

Concept.png Monopoly 
(market)Rdf-entity.pngRdf-icon.png

“[B]oth the extreme right and the extreme left of the conventional political spectrum are absolutely collectivist. The national socialist (for example, the fascist) and the international socialist (for example, the Communist) both recommend totalitarian politico-economic systems based on naked, unfettered political power and individual coercion. Both systems require monopoly control of society. While monopoly control of industries was once the objective of J. P. Morgan and J. D. Rockefeller, by the late nineteenth century the inner sanctums of Wall Street understood that the most efficient way to gain an unchallenged monopoly was to "go political" and make society go to work for the monopolists — under the name of the public good and the public interest. This strategy was detailed in 1906 by Frederick C. Howe in his Confessions of a Monopolist.”
Antony Sutton [1]

 

Related Quotations

PageQuoteAuthorDate
Platformization“Platform businesses, such as Amazon, Google and Facebook, have come to dominate their respective markets. They have generated massive network effects by facilitating exchanges with technology. As these platforms get more popular, their user value increases, leading to a virtuous cycle where the entire market coalesces around them. Their success has benefited consumers, with both low prices and access to more data-driven services. But this has also resulted in winner-take-all dynamics, making them powerful monopolies and preventing new entrants from coming in and attracting the market away from the dominant platforms. While users have come to coalesce around these platforms because their needs are being well-served, their powerful network effects risk guaranteeing their winner-take-all position. In their initial days, these platforms rapidly gained user acceptance by providing value to them. Their benevolence is increasingly looking like dominance. While they have enabled interactions and opened up markets, increasing efficiency for customers and vendors alike, they are attracting scrutiny. Data has become currency and they have a monopoly on it.”Sangeet Paul Choudary8 May 2017
Platformization“New entrants face near insurmountable hurdles in such an ecosystem. Consider a new platform that launches and wants to attract partners by offering them better economic terms than the dominant platform. These could involve lower selling fees or other subsidies like free promotions. These terms, in turn, may encourage sellers to reduce prices on the new platform. In such a case, the dominant platform can once again leverage the preferred customer clause and force sellers to offer the same lower prices. However, it is under no obligation to give sellers the better economics they enjoy on the new platform. As a result, sellers are hesitant to join the new platform because any price reduction on it, when mirrored on the dominant platform, would translate to lower margins for them. Thus sellers go on with the dominant platform and the new platform never takes off. As we learn from the above scenarios, a dominant platform may achieve winner-take-all market share by serving the ecosystem well, but it often holds on to this advantage despite working against the interests of the ecosystem. It achieves this purely through negotiating favourable contracts. As dominant platforms continue to thrive, their monopoly is reinforced through these predatory contracts. While sellers feel squeezed, consumers may continue to benefit from better prices. This wards off scrutiny by regulators who are often looking for predatory pricing on the consumer side as evidence of antitrust practices. This is the dark side of winner-take-all platforms.”Sangeet Paul Choudary8 May 2017
Platformization“So one of the things that these five companies have done kind of masterfully is create these platforms that startups have to use to get to customers. So they all own these cloud-storage services. So Amazon is an example. If you want to store your media online - so, for example, all the movies that you watch on Netflix are actually stored on Amazon servers - so every time you use Netflix, Netflix is kind of paying Amazon for that kind of storage.

Yeah. It's surprising, first of all, because they're such different companies. You wouldn't really know - you wouldn't really think that they would have that kind of connection. And then they're also competitors. Netflix makes original TV shows and so does Amazon. And so, you know, in this way, Netflix has this dependence on one of its competitors. There are lots of different examples of this though.

There - you know, all app makers have to put their apps in the Apple app store or the Google app store. And when they sell in those apps, 30 percent of that money goes to Apple or Google. They all have to advertise on Facebook or Google to get customers because that's become the way to advertise on digital platforms. And so any new app - Uber, Airbnb, Netflix, all the other sort of smaller companies online - have to go through these five to get to their customers. And what ends up happening is that other companies succeed, but always these five benefit off of that success.”
Farhad Manjoo26 October 2017


References

  1. Wall Street and The Bolshevik Revolution p. 6


57px-Notepad icon.png This is a page stub. Please add to it.