What is coercive monopoly?

A coercive monopoly occurs when a single company or entity dominates a market by using force, threats, or government support to eliminate competition, rather than through superior products or services. This type of monopoly restricts consumer choice and can lead to higher prices and lower quality, as the monopolist faces little to no competition. Unlike natural monopolies, which may arise from efficiencies in production or distribution, coercive monopolies undermine free market principles. Such monopolies can negatively impact innovation and overall economic health.