Question

why complementary monopoly is ideal for the tragedies of the common??

Answer 1

A complementary monopoly is an economic concept. It considers a situation where consent must be obtained from more than one agent to obtain a good.

Our society has traditionally operated under the assumption that with a bit of regulation, the human drive to act in our own self-interest will lead to healthy competition. But when it comes to shared resources, this competition can lead to a depletion of common goods and resources, resulting in a phenomenon known as the tragedy of the commons.

The principle can be easily applied to a monopoly competition that is the consent is obtained by more than one people.

Consider a road between two towns where half of the road is owned by two agents. A customer must pass two toll booth in order to pass from one town to the other. Each agent sets the price of his toll booth.so in this way tragedies for common can be appplied here.