Monopoly pricing

This article describes a pricing strategy used by sellers, typically in markets that suffer from imperfect competition, significant transaction costs or imperfect information.
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Definition

Monopoly pricing is a pricing strategy followed by a seller whereby the seller prices a product to maximize his or her profits under the assumption that it does not need to worry about competition. In other words, monopoly pricing assumes the absence of competitors being able to garner a larger market share by charging lower prices.

Monopoly pricing requires not only that the seller have significant market power, possibly a monopoly ornear-monpoly or a cartel of oligopolists, but also that the barriers to entry for selling that good are high enough to disable potential competitors from being attracted by the high pricing.