ABC, a Monopoly?

     On August 26^th, we discussed the different types of monopolies – public, private, and publicly regulated. I understood the examples that were discussed but wanted to look further into which category other companies would fall under. Being from Florida, one of the first industries that came to mind was the sale of liquor in Virginia. At home in Jacksonville, there is a corner store that sells liquor every few miles, with bright flashing lights usually advertising the sale of the week. When I came up for move-in weekend my first year, it was weird not to see those bright attention-grabbers here. The ABC store is the only store in the state allowed to sell liquor, which leads directly into the question of what type of monopoly it is. Although I assumed the stores were government-run, there was also a strong possibility that they were just publicly-regulated – something I had no expertise on given that the idea of the state being so involved in these sales still is unique to me.

After looking into some background information on alcohol laws in Virginia, I came to the conclusion that the ABC store (in Virginia at least) is actually an example of a public monopoly. This means the government itself runs the ABC stores. Further, I even found out that Virginia is rather uncommon in its handling of this industry, and some are trying to overturn this monopoly in the name of privatization. There is, however, push back due to the high revenue these stores bring in for the state. So, in answering my question of what type of monopoly it is, I am left with even more questions – namely, if a public monopoly on the sale of liquor brings in so much revenue, what incentives do already privatized states have to leave their own liquor sales in the hands of the market at large?