Monopoly power abuses lead directly to economic market failure
Economic literature consistently recognizes monopoly power as a primary driver of market failure, leading to inefficiencies, excess pricing, and poor service delivery.
The retrieved papers provide robust theoretical and empirical support for the claim that monopoly power abuses result in market failures across various sectors, including transport, tobacco, and health care. Papers 1, 4, 5, and 7 explicitly connect market power and monopoly abuses to inefficient economic outcomes, market failures, and the need for regulatory intervention. The remaining papers are tangential, focusing on power grid optimization algorithms or energy markets rather than economic monopoly abuses.
Zhenwei Zhang. Market Failure in UK Public Transport. 2026. https://doi.org/10.61173/c9v2tw17
Paper 1 links monopoly power in rail services directly to market failures involving poor performance, rising fares, and unequal access.
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Anna B Gilmore, J Robert Branston, David Sweanor. The case for OFSMOKE: how tobacco price regulation is needed to promote the health of markets, government revenue and the public.. 2010. https://doi.org/10.1136/tc.2009.034470
Paper 4 identifies market power as a primary cause of market failure that allows firms to exploit pricing power and extract excess profits.
A Maynard. Public and private sector interactions: an economic perspective.. 1986. https://doi.org/10.1016/0277-9536(86)90182-6
Paper 5 lists monopoly power alongside information asymmetry as a core characteristic driving inefficient and inequitable outcomes in markets.
C Ham, A Maynard. Managing the NHS market.. 1994. https://doi.org/10.1136/bmj.308.6932.845
Paper 7 highlights that a lack of intervention regarding monopoly powers abusing their position can result in market failures like inadequate service cover.
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