Monopolistic and Imperfect Competition in Retail Trade

Abstract

To proclaim the prevalence of monopoly in any sector of the national economy in which the criteria set up by the theory of perfect competition are not fulfilled, and to recommend the abolition of the monopolistic element, is not enough for a positive policy for that sector. The conceptual controversy about competition and monopoly has shown that pure and perfect competition itself is open to criticism from the point of view of a welfare economy, and that monopoly, so often prejudicial to the consumer, need not necessarily be so. Only the study of the sector, however limited a market it may be, can enable theoretical analysis to be carried any further, whilst at the same time affording guidance in the choice of an appropriate economic policy.

Translated from the French by J. Kahane.