Nov 2023

 

Technology and Monopoly

 In the interest of full disclosure, everything in this article written after the heading, “Technology and Monopoly: An Intricate Dance” was produced by an AI after giving it/her/him/them...whatever,  the prompt, “relationship between technology and monopoly”.  What you are reading now was fully researched,synthesized, and created by a bona-fide human creature. 

So first, allow me (the aforementioned creature) to explain the catchy rhyming title of this piece.  What do Technology and Monopoly have in common besides the ending letter “y”  which causes them to rhyme?  One could also argue, somewhat perversely, that their opposite connotations (technology/good, monopoly/bad) serve to link them together which got me to wondering how opposites can have something in common.  After a bit of digging, I found that actually, opposites have more in common than non-opposites because they share a continuum. Aristotle's doctrine of the mean states that every virtue is a balance between two extreme behaviors, one of excess and one of deficiency. For instance, the virtue of courage is the balance between the excess of recklessness and the deficiency of cowardice. Thus, these extreme behaviors are considered as opposites. On the other hand, most  "non-opposites" are things that do not share any continuum between them. Hence, they do not have anything in common with each other.”

Now although technology and monopoly are not strictly on a continuum of any specific property,  they do share a sort of a cause-effect relationship because the introduction of any new technology into any society not only causes existential disruption but also results in an economic disruption in a market-driven economy such as ours by granting a “natural” monopoly to the creators. ( A natural monopoly is an industry or sector with high barriers to entry and start-up costs that prevent rivals from competing. As such, a natural monopoly has only one efficient player. This company may be the only provider of a product or service in an industry or geographic location. Natural monopolies can arise in industries that require unique raw materials, technology, or similar factors to operate. Examples include railways and utilities such as  water, sewer services, and electricity (Wikipedia)

 However, before proceeding, it behooves us to be sure of precisely what a plain old monopoly is and how it works before drawing any conclusions (aka “look before you leap”) 

Investopedia provides a concise description of the definition of a monopoly as well as some of its Pros and Cons:

I hadn’t thought about the economic intricacies of monopolies until this fuss about the government suing companies as well as companies suing other companies over the issue of monopolies (for much, much more information,  search on the phrase “Companies accused of monopoly” and you should get this:

“About 1,690,000 results Companies accused of monopoly include: Amazon, Apple, Google, Facebook, and Microsoft”  ...followed by another list of articles which not only indicate the raised interest in this issue but should satisfy even a lawyer’s curiosity.

 I was certainly not aware of the actual Pros and Cons of a Monopoly and I only have fond memories of playing the Parker Brothers version of the game of Monopoly as a kid growing up in Atlantic City, NJ. In the unhappy circumstance you have never experienced the pleasures of  playing  Monopoly, I instructed the Bing AI to explain the rules of the game, receiving the following response,

“Monopoly is a classic board game designed for 2-8 players1. Here are the basic rules:

1. Objective: The goal of the game is to bankrupt your opponents by buying property, building houses, and charging rent1.

2. Starting the Game: Each player is given a fixed amount of play money at the start1. Players move around the board according to the throw of a pair of dice1.

3. Buying Property: Any player who lands on an unowned property may buy it1. If a player can’t or doesn’t want to purchase it, it is auctioned off to other players2.

4. Paying Rent: If a player lands on a property owned by another player, rent must be paid to that player1.

5. Banker’s Role: One player is selected to be the banker, who hands out deeds, makes change, and distributes money to other players1.

6. Winning the Game: The game ends when only one player remains. 

Remember, Monopoly can be a long game, especially with more players. Enjoy your game! 😊

Learn more: 1. Britannica.com  2. Bargames101.com 3. Wikihow.com”

(I’m not sure if I enjoyed or was annoyed by the smiley face}

In this version, only the Pros of unfettered Capitalism are rewarded, the goal being to drive the other players into bankruptcy, thus winning the game.

Until I did the research for this article, I did not know that the original game of Monopoly was created over one century ago,  not to extol but to expose the evils of capitalism. “In 1903, Georgist Lizzie Magie applied for a patent on a game called The Landlord's Game with the object of showing that rents enriched property owners and impoverished tenants. She knew that some people would find it hard to understand the logic behind the idea, and thought that should it be put into the concrete form of a game, it might be easier to demonstrate. She was granted the patent for the game in January 1904. “ (Wikipedia (which, by the way is now asking for well-deserved donations))

I also  discovered that while originally being banned in China as it conflicted with the values of communism, the game has been reinstated for manufacture in order for China to participate in the World Trade Organization. Never underestimate the power of greed

On a more personal note, the version of the Monopoly game that I learned to play was as a child living in Atlantic City, NJ where the streets and other common geographical features ( like the boardwalk) were named after places I already knew so like most children my age I just accepted that as another feature of my reality without giving it a thought  --- I was like  a fish unaware that I was underwater --- it just was what it was. 

 When our family moved to Washington D.C. and we were playing the game I experienced this weird feeling that the street names  weren't right, they were not the same as where I was now living.  This feeling was replaced by the staggering  insight that streets and their  names do not follow you as you move about the country. It was a simultaneous blow to my ego and a startlingly delightful insight that caused me to laugh out loud. I still smile when I think about it. The world, in fact, does not revolve around any of us, except of course, for certain politicians and other thespians who shall, for purposes of this column, remain unnamed.

Technology and Monopoly: An Intricate Dance

In a world where technology governs our daily lives, the rise of monopolies has become an unavoidable reality. Innovative products and services are often developed by tech giants, who wield vast control and power over the market. While these monopolies drive technological advancements and fuel economic growth, their dominance raises concerns about ethics, privacy, and competition.

The tech landscape is constantly evolving, with companies like Amazon, Google, and Facebook leading the way. These corporations possess the resources and influence to shape our digital experiences. They introduce groundbreaking technologies, such as artificial intelligence, virtual reality, and blockchain, that have the potential to revolutionize entire industries.

On one hand, these advancements contribute to the convenience and efficiency of our lives. From personalized recommendations and efficient online shopping to instant communication, the benefits are evident. However, the downside of such monopolistic control becomes apparent when competition is stifled, consumers face limited choices, and innovation is deterred.

Many argue that monopolies gain an unfair advantage through their immense data collection capabilities. With user data becoming the new gold, these tech giants have access to a treasure trove of information. They can analyze user preferences, behaviors, and habits, enabling them to deliver more tailored products and services. However, this also raises concerns about privacy and the potential for these companies to exploit personal data for their own gain.

The intersection of technology and monopoly gives rise to important questions about regulatory oversight. Governments and policymakers worldwide are grappling with the need to strike a balance between fostering innovation and safeguarding the interests of society. Antitrust laws and regulations attempt to prevent monopolies from engaging in anti-competitive practices, ensuring fair competition and protecting consumers.

Efforts to curb the power of monopolies have gained traction, with landmark cases and investigations targeting the likes of Google and Facebook. Calls for more transparency, data privacy regulations, and the promotion of healthy competition are becoming increasingly urgent. The aim is to preserve the benefits of technological innovation while avoiding the negative consequences of unchecked monopolistic dominance.

As the ever-expanding realm of technology continues to shape our lives and reshape industries, the relationship between technology and monopoly remains complex. It is a dance where innovation, convenience, and concern must find a harmonious coexistence. Striking the right balance is crucial in ensuring that technological progress benefits all, without sacrificing competition, privacy, and consumer choice.