All monopolists make excessive profits? Think again!

Some markets are served by one single supplier. This single supplier is called a monopolist and has absolute market power. Whereas in a perfectly competitive market, all suppliers are price takers, a monopolist is a price maker!

The monopolist decides which quantity is provided to the market and which price will be asked. Intuitively, one would conclude that all monopolists should be making extremely high profits. Simply, “because they can”. In reality however, this is not always the case. In this session, we will explain you why.

Stephan Weemaes is lecturer and researcher at VIVES University of Applied Sciences. He teaches economics, design thinking and international business development. His research with a focus on the strategic impact of external advisory services and boards of directors within startups and SMEs was published in top journals including Academy of Management Perspectives, Small Business Economics and Strategic Entrepreneurship Journal.