The word monopolies has negative connotations in economic history, but recently monopolies have been praised by people such as Warren Buffett and Peter Thiel. The arguments for and against are not new, but now they have better empirical support.
Monopolies are good for the economy
Monopolies provide capital for R&D and incentives to entrepreneurs.
Monopolies stimulate capitalism
Without monopoly type profits, there would be little incentive to innovate.
With no consumer choice, companies have pricing power. Consumers have no choice but to buy from the company who has a monopoly because they have no other options. Because of this, the company with a monopoly can set prices as high as they want, since they do not need to compete with other company's products to win consumers over.
Monopolies do not have to worry about constantly making innovations to their product because consumers are forced to buy from them in the first place. A lack of market competition equals a lack of innovation.
