Thomas J. Di Lorenzo was born on August 8, 1954. He was an American economic professor at Loyola University Maryland Sellinger School of Business since 1992 and identifies himself as an believer of the Austrian School of economics. He is a member of the research team at The Independent Institute, a senior associate of the Ludwig von Mises Institute. He holds a Doctor of Philosophy in Economics in Virginia Technology. He became professor in a few universities in the US and wrote many books and articles containing controversial issues about economic situation and political issues. He became a frequent speaker at von Mises Institute events and offer several online courses about political subjects and also writes for LewRockwell.com. One of his prominent contributions to the world of economics is his article which was published in The Review of Austrian Economics Vol. 9, No. 2 (1996):43-58 ISBN 0889-3047, the title is the Myth of Natural Monopoly.
Evaluation/Analysis
In microeconomics, industrial organization and in economics books, natural monopoly is described as a situation in which, in structural perspectives, only one firm finds it beneficial to produce in the marketplace. With Natural monopoly, average total Costs
…show more content…
Major manufacturer, producer and economies of extent were seen as a competitive virtue, not a monopolistic vice. According to Herbert Davenport of the University of Chicago in 1919 together with James Laughlin observed that in order to have a spirited competition, there must be rivalry of some large economic scale. Based on Irving Fisher and Edwin R.A. Seligman, they both agreed that large-scale production produces competitive benefits through cost savings in various aspects in advertising, selling and in