Monopoly power abuses lead directly to economic market failure
the verdict
SUPPORTED
the evidence backs this
confidence 75/100
Economic literature consistently recognizes monopoly power as a primary driver of market failure, leading to inefficiencies, excess pricing, and poor service delivery.
Evidence for · 4
Market Failure in UK Public Transport
2026 · cited by 0
Paper 1 links monopoly power in rail services directly to market failures involving poor performance, rising fares, and unequal access.
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More for · 3
The case for OFSMOKE: how tobacco price regulation is needed to promote the health of markets, government revenue and the public.
2010 · cited by 0
Paper 4 identifies market power as a primary cause of market failure that allows firms to exploit pricing power and extract excess profits.
Public and private sector interactions: an economic perspective.
1986 · cited by 0
Paper 5 lists monopoly power alongside information asymmetry as a core characteristic driving inefficient and inequitable outcomes in markets.
Managing the NHS market.
1994 · cited by 0
Paper 7 highlights that a lack of intervention regarding monopoly powers abusing their position can result in market failures like inadequate service cover.