55 sats \ 3 replies \ @Akg10s33 15 Aug \ on: Are Monopolies Always Bad? econ
The truth is that it seems to me that monopolies from the point of view have their good side or their bad side. For example, here in Lima, Peru, where I have lived for more than 7 years, there are several business monopolies, one of them is, for example, the monopoly of the beer here there is only one company that manages the entire monopoly of the different brands of beer, manages the prices and obviously manages what people are going to buy, everyone who goes to see a beer here in Lima Peru buys the same business monopoly And on the other hand, the monopoly of pharmacies or pharmacies, they call it, also seems bad to me. Here there is a living place near a large hospital in the south of Lima and in front of or on the avenues adjacent to the hospital there are endless pharmacies or pharmacies. But all or almost all of them belong to the same monopoly, which means that they all manage the price as they want at their convenience and take advantage of the people who need those medicines or who have an emergency with a family member and that seems really bad to me... on the other hand It seems to me that there are people who have struggled for many years to create their product to create their company to expand in a market and well if today they have managed to advance by calling it correctly and have been able to launch different brands and have had acceptance For the public, it is also valid that they are people who fought and achieved it, so as I said, it has its pros and cons.
Are these monopolies enforced by the state? Maybe that's to specific. Are there barriers that make it harder for upstarts to enter the market for beer or medical care?
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In reality, from what I have been able to read, the monopolies of pharmacies or pharmacies here in Peru are from the private sector... but it is surprising how many establishments they have nationwide... in addition to that, being a chain of businesses they pay a very complete amount of tributes or taxes to the state... we would say that in this way they would have the capacity to move influences in the high spheres and avoid supervision or inspection by the government... thus giving them good impunity... and in that way manage the prices and quantities as they want and when they want!!! and that is bad since we are talking about products that are for the benefit of people's health! At least I think about it that way, now the beer monopoly is total. I very much doubt that any different brand that wants to improvise that wants to start in the beer market can emerge or can advance against a monster or monopoly as big as the one that exists. It exists from the company Backus here in Peru
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What it sounds like you are describing is a regulatory moat or maybe the simple bribery of government officials.
If starting a business requires the permission of the government you have regulation. I would be shocked if pharmacies are not under some form of regulation though I suspect it much more liberal than the US.
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