What is the history of monopoly

Hanisauland: Lexicon @todo: from Preprocess

Sole seller

The term "monopoly" comes from the Greek. Translated, the word means "privilege", "sole claim" and "sole sale". One speaks of a "monopoly" when a dealer, a company or a manufacturer acts as the sole seller of a product or a service. The seller then has a monopoly. The sole seller thus has great power.

If only there was a bicycle dealer ...

Let's say there is only one company in the country that sells bicycles. This could freely determine the prices for bicycles. You don't have to fear any competition. Because there is a risk that such a monopoly position will be exploited, there are legal provisions in Germany against it. But there are also monopolies that are wanted. In some cases, you specifically want that there is only one person or only one institution that can determine.

  • With the "state monopoly" only the state has the right to manufacture certain goods or to sell certain services. Until a few years ago, for example, the post office and the railroad were state monopoly companies in Germany.
  • One speaks of a "natural monopoly" when raw materials such as gold or uranium can only be found in certain countries.
  • Someone has a "legal monopoly" when they have a patent on an invention, so that no one else is allowed to manufacture and sell the thing.
  • And then there is the state's "monopoly of force". This means that only the state, for example through the police, may exercise violence.