The Economic Perspective: “Technology and Monopoly”

Mary:  I’m Mary Walden, with economist MW, welcoming you to the economic perspective.  Today’s program looks at technology and monopoly.  Mike, there’s been considerable debate over the alleged lack of competition in the technology industry.   Some elected officials have even recommended legal controls over the firms.  Is the technology sector really a monopoly?

 

Mike: Summary Answer

  • Of course, there are many tech firms, but some say within segments of the technology industry, there are clearly dominant firms
  • But this is an important point – there are numerous segments of the tech industry
  • Social media, gaming, computing, storage, and others
  • While there can be an argument made there may be a dominant firm in, say, social media, this isn’t true for all segments
  • Storage – for example – cloud storage -there are numerous competitors and considerable competition for customers’ business
  • So can’t paint all tech with the same brush
  • I’m MW

 

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.