Editing Monopoly (section)

=== The innovation trade-off ===
A persistent debate concerns whether monopoly power inhibits or promotes innovation. The traditional view holds that competition spurs innovation while monopoly stagnates it. Some economists argue that the prospect of achieving temporary monopoly profits provides crucial incentives for innovation that competitive markets cannot match. This perspective suggests that certain forms of monopoly power might be desirable when they result from and reward innovative activity, particularly in industries with high research and development costs like pharmaceuticals.