Browse Definitions:
Definition

monopoly

Contributor(s): Matthew Haughn

A monopoly is the dominance of a specific market by a single business. Monopolies may result from a lack of competing companies in a given market or a limited number of companies that are strong competitors. These conditions can arise naturally but they are sometimes the result of aggressive, questionable and potentially illegal business practices including industrial espionage and backdoor selling

Monopolies can exist in reality or in effect. The latter situation arises when conditions exist in which a single business controls a supply channel despite the existence of competition. Effective monopolies are often referenced in the context of purchasing and procurement and specific to a company.

An effective monopoly situation can arise for a buyer in a number of ways:

  • Intellectual property ownership can prevent other suppliers from filling a need.
  • Customers may specify sources as a part of requirements.
  • The costs incurred switching suppliers could be prohibitive.
  • There could be a lack of technically acceptable solutions among competitors.
  • Company policies can create barriers to internal businesses or international suppliers.

When a single business holds a monopoly or other factors prevent free and open competition, market distortion results. Distorting the normal supply and demand model through monopoly can squeeze out new competition and inflate prices. Market distortion provides difficulty both for consumers and for private sector businesses following standard and ethical business processes.

This was last updated in August 2016

Continue Reading About monopoly

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

  • password

    A password is an unspaced sequence of characters used to determine that a computer user requesting access to a computer system is...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • RAID (redundant array of independent disks)

    RAID (redundant array of independent disks) is a way of storing the same data in different places on multiple hard disks to ...

  • data migration

    Data migration is the process of transferring data between data storage systems, data formats or computer systems.

  • compact disc (CD)

    A compact disc is a portable storage medium that can be used for recording, storing and playing back audio, video and other data ...

SearchSolidStateStorage

  • NVMe (non-volatile memory express)

    NVMe (non-volatile memory express) is a host controller interface and storage protocol to enable a solid-state drive to use the ...

  • SSD RAID (solid-state drive RAID)

    SSD RAID (solid-state drive RAID) is a methodology commonly used to protect data by distributing redundant data blocks across ...

  • Tier 0

    Tier 0 (tier zero) is a level of data storage that is faster, and perhaps more expensive, than any other level in the storage ...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close