👞 How are monopolies formed?

Learn Austrian Economics in a fun way!

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[warrenlehmkuhleii]

John lived long enough to see himself become a villain.

[TheImperatorKnight]

Thank you for making this video! I'm sick of people who claim that 'capitalism' is the cause of monopolies when it's clear that only State regulations and 'laws' can actually create them. Will be sharing the video

[rebeccamamabear]

I'm homeschooling my daughter, she's 11, almost 12. I'm showing her these videos in some of her economic class. I think it's important for individuals to understand these things in order to make informed decisions. They don't teach these things in public schools.

[jzk]

The way of the monopoly is the way to go. Keep making videos covering this topic from different niches and angles. Geographical monopolies like the only snack shop at the cinema, or no outside drinks allowed at night clubs so a $20 bottle of vodka is sold for $750 has always facilitated me.

[donnyboon]

TIK sent me. Great videos. Subscribed. Thanks TIK! 👍

[rogue]

Another well reasoned and laudable video.

Amazon perfectly exemplifies this.

[rodneyholland]

From Australia here... all I can think of is Australian banking companies... and food distribution companies... and construction companies... etc... frighteningly well made video.

[RKhere]

Do not stop making these videos! I love them

[PedroHenrique-bpts]

Can you make a video regarding Quantitative Easing and its effects on economy?

[derpmansderpyskin]

It's very important for libertarians to ensure that everything stays in the realm of the theoretical. Standard Oil, Amazon, or any other real world monopoly wasn't created because Amazon got exclusive license to sell goods online, or because Standard Oil had a tariff levied against oil imports. They were created by the most simple market force: the better your services are, the bigger you get. The bigger you get, the harder it is for others to compete with you, and the easier it is for you to buy up smaller competitors. It's not hard to compete with Amazon because of some government licensing program- anyone can sell stuff online- it's difficult to compete because Amazon is huge.

[mariaqueenswayacademy]

It's really helpful and informative. Thank you!

[mladenmatosevic]

Does not tackle problem of global monopolies. For example, John's main competitor buys his company and in time closes factories... And small new company still have to deal with regulatory obstacles and competitor with massive economy of scale.

[Brandon_]

I'm glad I have notifications on for this channel

[nPcDrone]

The worst monopoly is the government's monopoly on force

[OneGlass]

The threat of a monopoly is often used by proponents of government intervention to justify a more active role of the state within the economy. This video shows in a fun and understandable way, how monopolies are not a market failure. Instead they are a direct result of the state.

[jensphiliphohmann]

About 05:00 f: _Shoe sell without the certificate would be forbidden._
This is not even necessary. You can also try to convince the customers by comparative advertising that buying shoes from a non-certified shoe producer or seller is likely to receive a bad product since only the certificate guarantees quality.

[syahrulhardianto]

Very well the explanation the video, thank you very much.

[GalendaDorothy]

There's more business knowledge in these 7 mins than my entire 3 yrs of univ education.

[aniksamiurrahman]

Sir, I got a question. Let's reimagine the scenario from 0:24. Let's take that instead of getting lazy, John worked hard and kept innovating. But as John has a much bigger farm and much larger customer base, 1) he has way more resources to invest on RnD 2) a much stronger supply chain to reach customers, 3) way bigger ad budget to reach everyone's mind 4) while also keeping profit margin low, 5) and allow him much wider error margin.

Now if a new entrepreneur wants to challenge John, he either has to match his quality, his supply chain and his ad budget (which are impossible without huge fund and experience) or sell his products with even lower profit, possibly to low income customers thus turning into a niche product. Even without govt. how likely a new competitor is to overcome all these?
With govt. as his accomplice, John has a much straightforward path to monopoly. But isn't monopoly/oligopoly kinda inevitable, albeit at slower pace, even without govt.?

[internethardcase]

What laws did standard oil use to create their monopoly? As far as i know they controlled all the trains to choke out all other competition.