degree to which monopoly firms extract consumer surplus from consumers by reducing the prices these firms charge Monopoly and the Concentration of Power The objections to monopoly run much deeper than worries over economic efficiency and high prices Because it enjoys barriers that block potential rivals, a monopoly firm wields considerable market power For many people, that concentration of power is objectionable A decentralized, competitive market constantly tests the ability of firms to satisfy consumers, pushes them to find new products and new and better production methods, and whittles away economic profits Firms that operate in the shelter of monopoly may be largely immune to such pressures Consumers are likely to be left with fewer choices, higher costs, and lower quality Perhaps more important in the view of many economists is the fact that the existence of economic profits provides both an incentive and the means for monopolists to aggressively protect their position and extend it if possible These economists point out that monopolists may be willing to spend their economic profits in attempts to influence political leaders and public authorities (including regulatory authorities) who can help them maintain or enhance their monopoly position Graft and corruption may be the result, claim these critics Indeed, Microsoft has been accused by its rivals of bullying computer manufacturers into installing its web browser, Internet Explorer, exclusively on their computers Attitudes about Microsoft reflect these concerns Even among people who feel that its products are good and fairly priced, there is uneasiness about Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 553