monopoly

—monopoloid, adj.

/meuh nop"euh lee/, n., pl. monopolies.

1. exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices. Cf. duopoly, oligopoly.

2. an exclusive privilege to carry on a business, traffic, or service, granted by a government.

3. the exclusive possession or control of something.

4. something that is the subject of such control, as a commodity or service.

5. a company or group that has such control.

6. the market condition that exists when there is only one seller.

7. (cap.) a board game in which a player attempts to gain a monopoly of real estate by advancing around the board and purchasing property, acquiring capital by collecting rent from other players whose pieces land on that property.

[1525-35; < L monopolium < Gk monopólion right of exclusive sale, equiv. to mono- MONO- + pol(eîn) to sell + -ion n. suffix]

* * *

Exclusive possession of a market by a supplier of a product or service for which there is no substitute.

In the absence of competition, the supplier usually restricts output and increases price in order to maximize profits. The concept of pure monopoly is useful for theoretical discussion but is rarely encountered in actuality. In situations where having more than one supplier is inefficient (e.g., for electricity, gas, or water), economists refer to "natural monopoly" (see public utility). For monopoly to exist there must be a barrier to the entry of competing firms. In the case of natural monopolies, the government creates that barrier. Either local government provides the service itself, or it awards a franchise to a private company and regulates it. In some cases the barrier is attributable to an effective patent. In other cases the barrier that eliminates competing firms is technological. Large-scale, integrated operations that increase efficiency and reduce production costs confer a benefit on firms that adopt them and may confer a benefit on consumers if the lower costs lead to lower product prices. In many cases the barrier is a result of anticompetitive behaviour on the part of the firm. Most free-enterprise economies have adopted laws to protect consumers from the abuse of monopoly power. The U.S. antitrust laws are the oldest examples of this type of monopoly-control legislation; public-utility law is an outgrowth of the English common law as it pertains to natural monopolies. Antitrust law prohibits mergers and acquisitions that lessen competition. The question asked is whether consumers will benefit from increased efficiency or be penalized with a lower output and a higher price. See also oligopoly.

* * *

▪ board game

      real-estate board game for two to eight players, in which the player's goal is to remain financially solvent while forcing opponents into bankruptcy by buying and developing pieces of property.

      Each side of the square board is divided into 10 small rectangles representing specific properties, railroads, utilities, a jail, and various other places and events. At the start of the game, each player is given a fixed amount of play money; the players then move around the board according to the throw of a pair of dice. Any player who lands on an unowned property may buy it, but, if he or she lands on a property owned by another player, rent must be paid to that player. Certain nonproperty squares require the player landing on them to draw a card that may be favourable or unfavourable. If a player acquires a monopoly—that is, all of a particular group of properties—that player may purchase improvements for those properties; improvements add substantially to a property's rental fee. A player continues to travel around the board until he or she is bankrupt. Bankruptcy results in elimination from the game. The last player remaining on the board is the winner.

      Monopoly, which is the best-selling privately patented board game in history, gained popularity in the United States during the Great Depression when Charles B. Darrow, an unemployed heating engineer, sold the concept to Parker Brothers in 1935. Before then, homemade versions of a similar game had circulated in many parts of the United States. Most were based on the Landlord's Game, a board game designed and patented by Lizzie G. Magie in 1904. She revised and renewed the patent on her game in 1924. Notably, the version Magie originated did not involve the concept of a monopoly; for her, the point of the game was to illustrate the potential exploitation of tenants by greedy landlords. Magie used the Landlord's Game to promote a remedy for such exploitation—namely, the single tax on property owners, a leading social issue among those who criticized land speculation as a cause of economic injustice.

      The Landlord's Game was still circulating in the early 1900s as a handmade board game, and other variations emerged that incorporated the monopolization of properties. Among those promoting this version were the brothers Louis and Fred Thun, who abandoned their patent attempt in 1931 when records of Magie's 1904 patent came to light, and Dan Layman, who named his game Finance but, like the Thuns, did not patent it. Darrow drew upon the earlier models, successfully marketing his version of Monopoly to retailers in the northeastern United States between 1933 and 1934. Demand soon overwhelmed his ability to mass-produce the game sets, but it took repeated efforts to convince Parker Brothers of the game's merit. Once the company acquired the game from Darrow, Parker Brothers promoted Monopoly as the brainchild of an out-of-work engineer seeking an affordable means of entertainment during a time of economic hardship. Lawsuits from others claiming to have invented Monopoly were settled by Parker Brothers.

      Monopoly became popular in many other parts of the world. In the original North American sets, the properties were named for streets in Atlantic City, New Jersey. Notable among these is Marvin Gardens, which is a misspelling of the real Marven Gardens in Atlantic City. Sets marketed in other countries may be modified to represent a local city; for example, London streets are used in the British version. Monopoly games also have been licensed with other North American cities as the subject (e.g., Chicago); prominent local landmarks and points of interest usually replace street names as properties.

* * *