LIRNEasia

The colloquium notes

Lara Alawattegama (LA): Monopoly means ‘a market with a single supplier’

Why a monopoly happens:
1. No close substitutes
2. Legal barriers to entry
3. Resource barriers
4. Unfair competition -predatory pricing

Rohan Samarajiva (RS) : Lack of competition leads to monopolies. Microsoft Windows is an example where none of the above characteristics applied

Chanuka Wattegam (CW): Is LIRNEasia a monopoly?

RS: What is LIRNEasia’s market?

No technical barriers for anyone to entry to the LIRNEasia market. So the answer is no.

LA: Natural Monopoly is what you get when the market is too small for a competitor to offer a lower priced product. (dis-economies of scale ) So a new firm may have to sell at a higher cost and will not be successful unless that adds value (i.e. improved technology).…