The Idea of a Natural Monopoly is a Fallacy

Well getting straight into it. A Natural Monopoly Has Never Occurred Standard Oil: My opponent concedes that Standard Oil is a very large company however questions whether it has all the characteristics of a Monopoly. I note he brought forward no specifics to support his view. As BOP rest with my opponent I ask him to explicitly explain why Standard Oil is not a Monopoly. Microsoft: My opponent argues that Microsoft was not considered a monopoly by law (Appeal to Law) and then explains that a case was brought against it was dismissed due to “errors in the due process of law”. This is not quite correct. Actually Judge Jackson convicted Microsoft for “taken actions to crush threats to that monopoly” <1> in November 1999. This implicitly shows that in the eyes of the law there was already a monopoly. Microsoft was punished by trying to maintain this monopoly. The subsequent appeal due to “errors in the due process of law” is irrelevant to establishing whether Microsoft had a Monopoly. The Power to raise and Lower Prices My opponent then goes on to explain that being “big” is not enough to show a monopoly and that Microsoft and Standard Oil have done nothing but lower prices. As Monopolies in general mean less market competitive prices (i.e. Price Rises) this must therefore show that neither Microsoft nor Standard Oil are Monopolies. This fails on 2 points. Microsoft did nothing but raise prices: I have scoured high and low for any information online to show that Microsoft steadily reduced prices. I ask my opponent to support this statement Price reduction is a technique to obtain a dominant Monopoly status: I will agree that Standard Oil reduced prices. They did this as they had economies of scale (see my round 2). As they could produce and sell cheaper than all competitors, the competitors went out of business leading Standard Oil to be a Monopoly. Monopolies make money by first pricing all competition out of the market. Once they dominate the market they then increase the price as there is no longer any competition for buyers to go to. Falling prices from Standard Oil is therefore actually support of my position The Walmart example: Walmart is not a monopoly and therefore cannot exercise monopoly power. There the example is irrelevant to the debate. Government Can Only Create Monopolies My opponent has yet to show why only Governments can create monopolies. Note examples are not enough to prove this point. Points extended The Impossibility of a Natural Monopoly on the Free Market My opponent has yet to provide details as to why a Monopoly is impossible. Points extended Contention 1: Barriers to Market Entry are the cause of Monopolies My opponent drops all my arguments except for my Resources Controls example which he claims is a monopsony. “A Monopsony is an example of imperfect competition similar to a monopoly” <2> Given this definition I fail to see the objection to my example. Points on all other points extended. Contention 2: Unethical Business Practices in the Free Market Dropped by my opponent. Points extended Contention 3: Examples of Natural Monopolies I defended my Microsoft example in my rebuttals. Points extended I thank my opponent and look forward to the next round <1> http://en.wikipedia.org... <2> http://en.wikipedia.org...