Monopolies in Namibia - The Good, the Bad, and the Complex
Monopolies are often blamed for high prices or poor service, as some companies, when free from competition, may charge more or deliver less. The typical argument is that introducing competition will automatically lower prices and improve service. But is competition always beneficial? In this article, we explore the different types of monopolies, their origins, and whether competition is always the best solution. What Are Monopolies? A monopoly occurs when a single company or entity controls the supply of a product or service, limiting choices for consumers. This control allows the monopoly to set prices, often higher than they would be in a competitive market. In Namibia, we see different types of monopolies: 1. Selling Monopolies : A company is the only supplier of a product, forcing customers to accept the prices it sets. 2. Producing Monopolies : A company controls the entire production process or source of supply, giving it significant influence over the market. 3. T rading Monopol...