Term Paper: Public Policy towards Monopoly

Sample Term Paper

The public policy that a government establishes towards monopoly is generally established in consideration of a number of aspects and elements but there are two that merit primary significance. It is imperative to realize that both these issues are ones that pertain to the problems created by the creation and elimination of a monopoly. The first issue in this regard is the matter that the implications of the creation of a monopoly are generally perceived as an inequitable solution by many stake holders. The issue is worsened and supplemented by the second problem that exists in the fact that there are certain industries where the presence of a monopoly is making room for economies of scale which are allowing for reduced costs in turn. In cases such as these, the creation and continuation of a monopoly would be an encouraged measure.

However, it is not only considered unethical but is also illegal in most regions of the world to carry out an action that seeks to eliminate competition or force mergers in an industry in an attempt to create a monopoly. The only actual action that can be taken in this regard is that of the implementation of regulatory efforts (Grossman & Cole, 2003). These regulatory efforts are generally considered as antitrust laws which are a major part of public policy.

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