El Monedero: por qué en algunas industrias no hay competencia y qué riesgos y retos trae esta situación Competition is often limited due to natural monopolies where duplicating infrastructure is impractical and costly, necessitating state regulation. In other industries, market power and illegal agreements like cartels reduce competition, even if theoretically unstable. Regulating these imperfect markets requires a delicate balance, avoiding price controls that can harm smaller businesses and favoring surgical interventions that protect consumers without stifling competition.

• Competition can be lacking with few sellers or few buyers (monopsony).
• Natural monopolies, like water systems, are examples where competition is not viable due to high infrastructure duplication costs.
• State regulation is crucial for natural monopolies to prevent abuses.
• Market power of dominant firms and illegal cartels can reduce competition in other industries.
• Regulating imperfect markets requires careful consideration; direct price controls can be counterproductive.
• Excessive regulations can favor large firms over smaller ones.
• Mergers can potentially improve competition if the new entity challenges dominant players.
• Monopsony occurs when few buyers can impose low prices on sellers.