On: European Commission fines Google €2.42B for abusin...

[jpttsn]

What makes a natural monopoly different from a monopoly?

How did Google displace previous search engines?

[vkou → jpttsn]

A natural monopoly has a positive feedback loop, where monopoly profits can be used to lock out competitors. This is typically due to network effects.

Building roads is an example of a natural monopoly. Consumer internet is an example of a natural monopoly. Growing corn is not a natural monopoly.

[dragonwriter → vkou]

> Growing corn is not a natural monopoly.

In the absence of a third-party with IP rights on seed, dominating corn growing means you dominate the seed supply and have the most variety to select from for improved traits (whether yield, hardiness to particular environmental stresses, etc.)

Seems to have a pretty clear feedback loop where dominance breeds dominance in the same way as with network effects. Sure, the source of the feedback loop is different, but it's very much there.