Abstract
Professor Machlup has dealt with the problem of whether monopoly can increase the stability of the system. This paper will discuss whether monopolies create rigidities in the economic system. Increasing stability means damping and, possibly, ruling out abnormal movements; therefore it is a positive achievement from the point of view of the efficiency of the system. On the other hand, to create rigidities means to hinder the normal development of the system; therefore the degree of rigidity of an economic system has negative implications as regards its efficiency.
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Notes
See V. Pareto, Corso di economia politica (Torino, 1943), vol. 2, p. 107.
Joan Robinson, The Economics of Imperfect Competition (London, 1933), Book X, p. 308.
F. Knight, Risk Uncertainty and Profit (Boston and New York, 1921), pp. 264 ff.
A. G. Papandreou, ‘Market Structure and Monopoly Power’, American Economic Review, 1949.
J. Hicks, Value and Capital (Oxford, 1939), p. 126.
P. M. Sweezy, ‘Demand under Conditions of Oligopoly’, Journal of Political Economy, 1939.
R. L. Hall and C. J. Hitch, ‘Price Theory and Business Behaviour’, Oxford Economic Papers, No. 2, May 1939.
O. Lange, Price Flexibility and Employment (Bloomington, Ind., 1944), p. 40.
K. W. Rothschild, ‘Price Flexibility and Oligopoly’, Economic Journal, 1947.
F. Vito, Le fluttuazioni cicliche (Milano, 1949), pp. 89 if.
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© 1954 International Economic Association
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Lombardini, S. (1954). Monopoly and Rigidities in the Economic System. In: Chamberlin, E.H. (eds) Monopoly and Competition and their Regulation. International Economic Association Coference Numbers 1–50. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08434-0_21
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DOI: https://doi.org/10.1007/978-1-349-08434-0_21
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