Formation of Monopolies
Perfect competition is not a natural state. Suppliers are not usually, naturally, perfectly equal. One person might load more hay than another, and that person, in turn, would be in higher demand.
Whatever the causes of imperfect competition, they allow for accumulation of wealth.
Accumulation of wealth has spawned societies and civilization.
Accumulation allows an entity to both ignore and compel other entities. With a large stock of food, you can ignore food-selling entities. With a large stock of food, in a famine, you can compel other people. But, these are just simple cases. With some accumulation of desirables, if you desired some land which an owner wished not to sell, you can covertly compel neighbors or relations or officials to make owning that land unpleasant for the owner that didn’t want to sell.
In this way, and due to people’s capacity to form cooperatives, groups can form that show dominance through coercion, and the rising of such groups, without any sophisticated mechanism against them, will not be naturally sufficiently opposed to stop them. And, in this way, we have monopolies.
The monopolies of today are many, but the most recognized are governments.
Historic View on Monopolies
The forming of monopolies in the form of sovereignties is so natural that it has occurred everywhere, in every civilization.
Many have attempted to determine a way in which the government monopoly can exist peacefully with both other governments and with its citizens. The US constitution was built on top of what represented the foremost thought on the matter at the time, the book “The Law of Nations”. It was the effort to make the US government as least aggregious to the citizens as possible, while giving it enough power to last, but just enough, and relying on the states to exert however much power the citizens of the states would allow for and agree with, and relying on the states to withdraw from the US contract upon the US government breaking its part of that contract.
As a side note, excepting secret treaties or agreements unbeknownst to me, the US government has infringed upon its side of the contract a multitude of times, and any state, under a basic understanding of contracts and treatise, has a right to withdraw. But, as seen with the civil war, this right has also been dishonored.
We arrive in the 21st century, and to my knowledge, there has been no significant improvement upon the ideas of the construction of the government monopolies towards the improvement of the general populace.