<p>You already have your answer in the last sentence. A monopoly can be established and that leads to well known &quot;bad&quot; economic consequences, i.e. economic inefficiencies.</p>

CC BY-SA 4.0
2021-01-02T19:44:34.157Z
2021-01-02T19:44:34.157Z
BB King
<p>yes it does because number one it stumps on competition therefore preventing diveristy of products avialable to customers in the market and subsequently less growth in that particular market pertaining that particular stock or commodity.</p>

CC BY-SA 4.0
2023-09-26T10:14:34.943Z
2023-09-26T10:14:34.943Z
user45120
<p>(Not sure If this question is suited for here or it should be asked at money or law SE)</p>
<p>As the title reads, Does any specific economic inefficiency arises when someone <strong>corners</strong> or <strong>tries to corner</strong> a market e.g. a commodity like silver?</p>
<p>My limited knowledge as a economics undergraduate student tells me that if the cornering leads to higher demand, then in <strong>a perfect market</strong> that would lead to a increase in supply (and the price could go up or down or stay flat depending on the industry costs).</p>
<p>For cases when perfect competition is not present or the supply is already limited (like precious metals) I can't be sure what could go wrong other than that the party who cornered the market can establish a monopoly on supply now.</p>

<law><welfare><surplus>
Does cornering a market has any "bad" economic consequence?
user2838619
# Does cornering a market has any "bad" economic consequence?

(Asked by: username_0 on 2021-01-02)

(Not sure If this question is suited for here or it should be asked at money or law SE)

As the title reads, Does any specific economic inefficiency arises when someone **corners** or **tries to corner** a market e.g. a commodity like silver?

My limited knowledge as a economics undergraduate student tells me that if the cornering leads to higher demand, then in **a perfect market** that would lead to a increase in supply (and the price could go up or down or stay flat depending on the industry costs).

For cases when perfect competition is not present or the supply is already limited (like precious metals) I can't be sure what could go wrong other than that the party who cornered the market can establish a monopoly on supply now.

**Tags:** law, welfare, surplus


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## 2 answers

### Answer by username_1 on 2021-01-02. Score: 2 | Accepted answer

You already have your answer in the last sentence. A monopoly can be established and that leads to well known "bad" economic consequences, i.e. economic inefficiencies.


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### Answer by username_2 on 2023-09-26. Score: 0

yes it does because number one it stumps on competition therefore preventing diveristy of products avialable to customers in the market and subsequently less growth in that particular market pertaining that particular stock or commodity.


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