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Economics The Game Monopoly Only Essay

In the real world, this is usually to one's financial detriment, but not necessarily so in the game. Comparing the game and real world versions of the monopoly concept, they are similar. In the real world, a monopoly can occur when an owner has exclusive rights over a resource. The color blocks are not considered monopolized until one person owns all of them. Before that point, the properties are considered to be subject to competition. In the game, competition is simplified significantly. Prices are simply stated -- players have no ability to control prices nor do they have the ability to attract demand. Demand is simply apportioned by the dice.

Nevertheless, once a customer has a monopoly, they can begin to extract premium rents. This is possible in the game only by virtue of the fact that some form of demand is assumed (from the dice). In the real world, demand for a product even in a monopoly cannot be assumed. There are substitute products, for example, that can reduce...

Also, because in the real world the monopolist is seeking to build long-term profits, they must price at a level that will not bankrupt the entire market. In the game, the short-term time orientation influences players to undertake activities with no regard to any potential long-term consequences. Thus, while the underlying concepts of the game are related to economics, they are simplified and modified in such a way as to facilitate easy game play, which would make the game a poor means to understanding how such market concepts work.
Works Cited:

Powell, S. (2009). How to play Monopoly game: Money, pieces and cards. How to do Things.com. Retrieved May 9, 2010 from http://www.howtodothings.com/hobbies/a4305-how-to-play-monopoly.html

Investopedia. (2010). Economics basics: Monopolies, oligopolies, and perfect competition. Investopedia. Retrieved May 9, 2010 from http://www.investopedia.com/university/economics/economics6.asp

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Works Cited:

Powell, S. (2009). How to play Monopoly game: Money, pieces and cards. How to do Things.com. Retrieved May 9, 2010 from http://www.howtodothings.com/hobbies/a4305-how-to-play-monopoly.html

Investopedia. (2010). Economics basics: Monopolies, oligopolies, and perfect competition. Investopedia. Retrieved May 9, 2010 from http://www.investopedia.com/university/economics/economics6.asp
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