For policymakers, the goal should not be to ban high fees but to eliminate artificial barriers that prevent qualified independent consultants from offering competitive alternatives. Avoid any consulting market where only one firm holds the certification, the data, or the access required for your project — you will pay a monopoly premium for standard advice.
A "consultancy fee monopoly" refers to a market structure where a single firm (or a collusive group) has sufficient control over the supply of consulting services to set fees significantly above competitive levels. Unlike a product monopoly (e.g., diamonds or software), a service monopoly in consulting is rare due to low barriers to entry. However, it can arise through mandated certifications , proprietary methodologies , network effects , or regulatory capture . The economic and social impact is generally negative, leading to inefficiency, rent-seeking, and reduced client welfare. 1. How a Consultancy Fee Monopoly Arises For a consultancy to achieve fee-setting power, one or more of these conditions must exist: consultancy fee monopoly