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Ludwig von Mises and Murray Rothbard tended to emphasize the same requirement for a monopoly price to emerge, as far as … regard to the question of the limits to monopoly pricing. The inelasticity of demand criterion of both authors left less room … for monopoly prices in their theoretical constructs of a hampered market economy than there really is. If one wants to …
Persistent link: https://www.econbiz.de/10013018419
This is a survey of the economic principles that underlie antitrust law and how those principles relate to competition policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each area, we select the most relevant portions of...
Persistent link: https://www.econbiz.de/10014023495
Demand for oil is very price inelastic. Facing such demand, an extractive cartel induces the highest price that does not destroy its demand, unlike the conventional Hotelling analysis: the cartel tolerates ordinary substitutes to its oil but deters high-potential ones. Limit-pricing equilibria...
Persistent link: https://www.econbiz.de/10010428773
a major share in total revenue, monopoly regulation typically concentrates on the control of core-good prices (“core …
Persistent link: https://www.econbiz.de/10010504043
-horizon, discrete-time game. Our goal is to identify the Markov perfect stationary equilibria where the seller can maintain his monopoly … power. We establish that the set of parameters supporting a monopoly outcome is larger when the seller offers different …
Persistent link: https://www.econbiz.de/10012431895
Persistent link: https://www.econbiz.de/10009724348
The paper studies the impact of homophily on the optimal strategies of a monopolist, whose marketing campaign of new product relies on a word of mouth communication. Homophily is a tendency of people to interact more with those who are similar to them. In the model there are two types of...
Persistent link: https://www.econbiz.de/10010272373
Persistent link: https://www.econbiz.de/10001690053
This paper characterizes dynamic monopoly price patterns when demand declines. Declining demand is caused by the …
Persistent link: https://www.econbiz.de/10014205765
We study the impact of piracy on the quality choices of a monopolist. In the absence of piracy, the monopolist has no incentive to differentiate its products. With piracy the monopolist might instead produce more than one quality, so that differentiation arises as the optimal strategy. This is...
Persistent link: https://www.econbiz.de/10014105279