Tuesday, July 15, 2008

Unrest in Malta.

A bit of education for you today, "The Encyclopedia of Business and Finance" not my normal read but I thought I would check out the meaning of the term Monopoly. Described thus,

'A monopoly, in its pure form, is actually quite rare. The majority of large firms operate in a market structure of oligopoly, which means that a few sellers divide the bulk of the market. People often have the impression that the goals of a monopolist are somehow evil and grasping while those of a competitor are wholesome and altruistic. The truth is that the same motives drive the monopolistic firm and the competitive firm: Both strive to maximize profits. A basic proposition in economics is that monopoly control over a good will result in too little of the good being produced at too high a price. Economists have often advocated antitrust policy, public enterprise, or regulation to control the abuse of monopoly power'.

So what does this have to do with anything, a fellow blogger Sabine tells the story in her own very carefully chosen words. Here

Competition is a painful thing, but it produces great results. Jerry Flint.

1 comment:

Sabine said...

ok Steve, pull that tongue out of your cheak - I wasn't at all in a mood of carefully mincing words. It's been a scary few days for me! And although things have calmed down a little, I'm still extremely upset about the damage these thugs are doing to Malta's reputation! Oh, and the quasi monopoly of public transport IS evil, in my humble opinion! ;-)