{"id":26240,"date":"2021-02-06T20:19:53","date_gmt":"2021-02-07T00:19:53","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=26240"},"modified":"2021-02-08T22:13:01","modified_gmt":"2021-02-09T02:13:01","slug":"different-types-of-monopolies","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/","title":{"rendered":"Different Types of Monopolies and How They Work"},"content":{"rendered":"\n<p>What are the different types of monopolies? How can you recognize these different types of monopolies?<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/www.shortform.com\/blog\/milton-friedman-capitalism\/\">Milton Friedman<\/a>, there are three types of monopolies: regulated, unregulated, and public. All of these types are harmful to economic development in different ways.<\/p>\n\n\n\n<p>Read more about the different types of monopolies and how they work.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Three Types of Monopo<\/strong>lies<\/h2>\n\n\n\n<p>There are three forms of monopoly:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Unregulated private monopolies, in which a private firm has cornered the market and is allowed to operate unfettered;<\/li><li>Regulated private monopolies, in which the government acts to eliminate competition in an essential market, like municipal power or water, often by subsidizing the sole authorized supplier (keeping the price of the good artificially low for the public); and&nbsp;<\/li><li>Public monopolies, in which the government itself acts as the sole manufacturer and seller of a good or service.<\/li><\/ul>\n\n\n\n<p>All three forms involve the elimination of competition, and are therefore harmful to economic freedom. But, all things being equal, regulated private monopolies and public monopolies are usually the most harmful. <strong>Regulated private monopolies and public monopolies use the coercive power of the <\/strong><strong><em>state <\/em><\/strong><strong>to enforce anti-competitive practices<\/strong>. Competition is literally illegal in such cases.&nbsp;<\/p>\n\n\n\n<p>For example, the Interstate Commerce Commission (originally created to <em>curb <\/em>the monopolistic power of private railroads) effectively became a regulated monopoly power that <em>protected <\/em>those private firms and isolated them from competition. Similarly, public monopolies like the US Postal Service can take advantage of the fact that they are publicly subsidized in order to undercut potential private competition.&nbsp;<\/p>\n\n\n\n<p>A private monopoly, by contrast, does not derive its power from a legal mandate. Therefore, particularly as new technologies emerge, the possibility exists that new players will emerge in the market that can challenge the power of the monopoly, in all the different types of monopolies. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the different types of monopolies? How can you recognize these different types of monopolies? According to Milton Friedman, there are three types of monopolies: regulated, unregulated, and public. All of these types are harmful to economic development in different ways. Read more about the different types of monopolies and how they work.<\/p>\n","protected":false},"author":5,"featured_media":10412,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,81,31],"tags":[204],"class_list":["post-26240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-economics","category-money","tag-capitalism-and-freedom","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Different Types of Monopolies and How They Work - Shortform Books<\/title>\n<meta name=\"description\" content=\"What are the different types of monopolies? According to Milton Friedman, there are three types: regulated, unregulated, and public.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Different Types of Monopolies and How They Work\" \/>\n<meta property=\"og:description\" content=\"What are the different types of monopolies? According to Milton Friedman, there are three types: regulated, unregulated, and public.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-07T00:19:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-02-09T02:13:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1708\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Carrie Cabral\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Carrie Cabral\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/\"},\"author\":{\"name\":\"Carrie Cabral\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/2ababb7c63a94ff5d2190f71dc417d56\"},\"headline\":\"Different Types of Monopolies and How They Work\",\"datePublished\":\"2021-02-07T00:19:53+00:00\",\"dateModified\":\"2021-02-09T02:13:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/\"},\"wordCount\":310,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg\",\"keywords\":[\"Capitalism and Freedom\"],\"articleSection\":[\"Business\",\"Economics\",\"Money\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/\",\"name\":\"Different Types of Monopolies and How They Work - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg\",\"datePublished\":\"2021-02-07T00:19:53+00:00\",\"dateModified\":\"2021-02-09T02:13:01+00:00\",\"description\":\"What are the different types of monopolies? According to Milton Friedman, there are three types: regulated, unregulated, and public.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage\",\"url\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg\",\"contentUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg\",\"width\":2560,\"height\":1708},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.shortform.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Different Types of Monopolies and How They Work\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\",\"url\":\"https:\/\/www.shortform.com\/blog\/\",\"name\":\"Shortform Books\",\"description\":\"The World&#039;s Best Book Summaries\",\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.shortform.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\",\"name\":\"Shortform Books\",\"url\":\"https:\/\/www.shortform.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png\",\"contentUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png\",\"width\":500,\"height\":74,\"caption\":\"Shortform Books\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/2ababb7c63a94ff5d2190f71dc417d56\",\"name\":\"Carrie Cabral\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/e9aea3c95254368e6bf388b046b35bacb82e4167f4c62c0813620e3a4ec51126?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/e9aea3c95254368e6bf388b046b35bacb82e4167f4c62c0813620e3a4ec51126?s=96&d=mm&r=g\",\"caption\":\"Carrie Cabral\"},\"description\":\"Carrie has been reading and writing for as long as she can remember, and has always been open to reading anything put in front of her. She wrote her first short story at the age of six, about a lost dog who meets animal friends on his journey home. Surprisingly, it was never picked up by any major publishers, but did spark her passion for books. Carrie worked in book publishing for several years before getting an MFA in Creative Writing. She especially loves literary fiction, historical fiction, and social, cultural, and historical nonfiction that gets into the weeds of daily life.\",\"url\":\"https:\/\/www.shortform.com\/blog\/author\/carrie\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Different Types of Monopolies and How They Work - Shortform Books","description":"What are the different types of monopolies? According to Milton Friedman, there are three types: regulated, unregulated, and public.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/","og_locale":"en_US","og_type":"article","og_title":"Different Types of Monopolies and How They Work","og_description":"What are the different types of monopolies? According to Milton Friedman, there are three types: regulated, unregulated, and public.","og_url":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/","og_site_name":"Shortform Books","article_published_time":"2021-02-07T00:19:53+00:00","article_modified_time":"2021-02-09T02:13:01+00:00","og_image":[{"width":2560,"height":1708,"url":"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg","type":"image\/jpeg"}],"author":"Carrie Cabral","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Carrie Cabral","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#article","isPartOf":{"@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/"},"author":{"name":"Carrie Cabral","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/2ababb7c63a94ff5d2190f71dc417d56"},"headline":"Different Types of Monopolies and How They Work","datePublished":"2021-02-07T00:19:53+00:00","dateModified":"2021-02-09T02:13:01+00:00","mainEntityOfPage":{"@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/"},"wordCount":310,"commentCount":0,"publisher":{"@id":"https:\/\/www.shortform.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg","keywords":["Capitalism and Freedom"],"articleSection":["Business","Economics","Money"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/","url":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/","name":"Different Types of Monopolies and How They Work - Shortform Books","isPartOf":{"@id":"https:\/\/www.shortform.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage"},"image":{"@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage"},"thumbnailUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg","datePublished":"2021-02-07T00:19:53+00:00","dateModified":"2021-02-09T02:13:01+00:00","description":"What are the different types of monopolies? According to Milton Friedman, there are three types: regulated, unregulated, and public.","breadcrumb":{"@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#primaryimage","url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg","contentUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg","width":2560,"height":1708},{"@type":"BreadcrumbList","@id":"https:\/\/www.shortform.com\/blog\/different-types-of-monopolies\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.shortform.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Different Types of Monopolies and How They Work"}]},{"@type":"WebSite","@id":"https:\/\/www.shortform.com\/blog\/#website","url":"https:\/\/www.shortform.com\/blog\/","name":"Shortform Books","description":"The World&#039;s Best Book Summaries","publisher":{"@id":"https:\/\/www.shortform.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.shortform.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.shortform.com\/blog\/#organization","name":"Shortform Books","url":"https:\/\/www.shortform.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png","contentUrl":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2019\/06\/logo-equilateral-with-text-no-bg.png","width":500,"height":74,"caption":"Shortform Books"},"image":{"@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/2ababb7c63a94ff5d2190f71dc417d56","name":"Carrie Cabral","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/e9aea3c95254368e6bf388b046b35bacb82e4167f4c62c0813620e3a4ec51126?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/e9aea3c95254368e6bf388b046b35bacb82e4167f4c62c0813620e3a4ec51126?s=96&d=mm&r=g","caption":"Carrie Cabral"},"description":"Carrie has been reading and writing for as long as she can remember, and has always been open to reading anything put in front of her. She wrote her first short story at the age of six, about a lost dog who meets animal friends on his journey home. Surprisingly, it was never picked up by any major publishers, but did spark her passion for books. Carrie worked in book publishing for several years before getting an MFA in Creative Writing. She especially loves literary fiction, historical fiction, and social, cultural, and historical nonfiction that gets into the weeds of daily life.","url":"https:\/\/www.shortform.com\/blog\/author\/carrie\/"}]}},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2020\/07\/building-a-monopoly-zerotoone-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts\/26240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/comments?post=26240"}],"version-history":[{"count":2,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts\/26240\/revisions"}],"predecessor-version":[{"id":26534,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/posts\/26240\/revisions\/26534"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/media\/10412"}],"wp:attachment":[{"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/media?parent=26240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/categories?post=26240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shortform.com\/blog\/wp-json\/wp\/v2\/tags?post=26240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}