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Monopoly Spillover Effects

  • Scott Gilbert
Chapter
  • 400 Downloads
Part of the Quantitative Perspectives on Behavioral Economics and Finance book series (QPBEF)

Abstract

In a market that goes from many suppliers to just one supplier, the advent of monopoly has an immediate effect: change in supply in that market. The pure monopoly model, discussed in Chap.  2, represents the monopoly effect in a given market. The effect is anti-competitive: price rises above the many-supplier competitive level, and goods quantity falls, doubly bad for consumers. The simplicity of the pure monopoly model is a virtue but also limits the range of behavior and outcomes that can be discussed within it.

Keywords

Monopoly Complement Substitute Equilibrium Spillover effect 

References

  1. Lerner, A. P. (1934). The concept of monopoly and the measurement of monopoly power. Review of Economic Studies, 1(3), 157–175.CrossRefGoogle Scholar
  2. Posner, R. (1975). The social costs of monopoly and regulation. Journal of Political Economy, 83(4), 807–828.CrossRefGoogle Scholar
  3. Posner, R. (1976). Antitrust law: An American perspective. Chicago: The University of Chicago Press.Google Scholar
  4. Tullock, G. (1967). The welfare costs of tariffs, monopolies, and theft. Western Economic Journal, 5, 224–232.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Scott Gilbert
    • 1
  1. 1.Southern Illinois UniversityCarbondaleUSA

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