Legal Monopoly

AAA

DEFINITION of 'Legal Monopoly'

A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.

Also known as a "statutory monopoly".

INVESTOPEDIA EXPLAINS 'Legal Monopoly'

A legal monopoly is set up in the beginning as a perceived best option for both government and its citizens. For example, AT&T operated as a legal monopoly until 1982 because it was deemed vital to have cheap and reliable service for everyone. Railroads and airlines have also been operated as legal monopolies at different periods in history. In most cases, capitalism has won out over legal monopolies as technology and the economy have become more advanced..

RELATED TERMS
  1. Franchised Monopoly

    Monopoly status given by the government to a company. A franchised ...
  2. Monopolistic State Fund

    A government owned and operated fund that is set up to provide ...
  3. Renationalization

    Bringing assets and/or industries back into national-government ...
  4. Government-Sponsored Enterprise ...

    Privately held corporations with public purposes created by the ...
  5. Monopoly

    A situation in which a single company or group owns all or nearly ...
  6. Monopolistic Competition

    A type of competition within an industry where: 1. All firms ...
Related Articles
  1. Economics Basics
    Economics

    Economics Basics

  2. Setting Vs. Getting: What Is A Price-Taker?
    Trading Strategies

    Setting Vs. Getting: What Is A Price-Taker?

  3. Antitrust Defined
    Personal Finance

    Antitrust Defined

  4. Where is cost of living lowest in the ...
    Economics

    Where is cost of living lowest in the ...

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center