Understand what A.S.A.'s real agenda is before you believe their lies,
A Coercive monopoly is a form of monopoly with which companies can operate in a given sector without any influence from competitive forces, because all potential market players are blocked from entering.
Coercive monopoly is contrary to non-coercive monopoly, in that the future of the monopoly is dependent on the measures taken to preserve the status quo. So in order to maintain the monopoly position, a firm must always consider the market dynamics at play and act accordingly.
Popular measures associated with this practice include adjusting prices and improving the production decisions, for instance, by pulling down prices to forestall any possibility of the other competitors penetrating the market.
Such a monopoly is also known as the efficiency of monopoly, because if the potential competitors can not afford to be more effective production wise, then they would find it hard to compete against the current monopoly.
Some argue that the only way for a business concern to effectively shut out any potential market entrants, and be in a position to raise prices freely without competitive worries. The firm needs the support and assistance of the government in curbing competition, otherwise prices will have to stay low.
When a company badly need to succeed in the use of coercion, thus effecting a compulsory monopoly through denial of all possibility for potential competition. It may resort to illegal or non-financial instruments such as blackmail to reach a compulsory monopoly position. A company can also achieve this through non-coercive means which include taking suitable action directly in the market, beating all other competitors to achieve monopoly target.
Once the company becomes the sole provider, it will be better placed to deal with issues of establishing effective entry obstacles. This form of monopoly was one of the most famous examples of the United States in the 1920s.
Direct government monopoly, involves a monopoly owned by the government itself, and those who manage the government monopoly under the command of the government departments. While a government-authorized monopoly, is a compulsory monopoly granted by law, but the monopoly of ownership pertain to private companies authorized by the government, the decision-making process is carried out by these private companies.
Government-granted monopolies tend to be identical to government monopolies in several ways, but the two can be separated on the grounds of the decision-making structure of the monopolist. Oil producing countries, are good examples when it comes to the development of state-owned oil firms, which are fairly common in countries such as Saudi Arabia’s (Aramco), Venezuela (PDVSA), these monopolies are designed with state nationalization of natural resources in mind.
— January 30, 2013 8:25 p.m.