marketstructureuncertaintyWe propose a generic oligopsony-oligopoly model to study bank behavior under uncer-tainty in developing countries. We derive a pricing structure that acknowledges market power in both the deposit and loan markets and identify two theoretical components to the loan rate: a ...
2 Allocative Efficiency: MC = Market Price Oligopoly Profit = (Price − ATC)× QuantityAlthough there are many major industries dominated by oligopolies, there are rarely prosecuted under antitrust laws. However, there are several factors that limit the pricing power of oligopolies, including forei...
We propose a generic oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries. We derive a pricing structure that acknowledges market power in both the deposit and loan markets and identify two theoretical components to the loan rate: a rent extraction component res...
With deregulation of these utilities, the market becomes open to competition for market share to begin. In terms of regulation of monopoly, the government attempts to prevent operations that are against the public interest, call anti-competitive practices. Likewise, oligopoly is a market condition ...
2001. Oligopoly pricing: Old ideas and new tools. London: MIT Press. Google Scholar von Stackelberg, Heinrich. 2011. Market structure and equilibrium. Berlin: Springer. Book Google Scholar Wang, Zizhuo, and Hu Ming. 2014. Committed versus contingent pricing under competition. Production and ...
What is price rigidity under oligopoly? How do barriers to entry create market power? Describe the role of prices in competitive market economies. How can pricing serve as a means of strategy or as a competitive tool with buyers? What are the pricing and non-pricing strategies monopolies use ...
It explains price competition by arguing that a market price goes down if—and only if—a price cut appears profitable to a firm even if its competitors follow suit. It also explains why markets do not always clear, that is, why production can be restricted by sales and not capacity at ...
What are the profit-maximizing conditions under oligopoly? A monopolist maximizes profits where MC 20 and the elasticity of consumer demand is equal to 2. What price maximizes monopoly profits? If a firm in a monopolistic market faces the above demand and cost curves, what ...
Decentralization and transfer pricing under oligopoly. Southern Economic Journal, 67(2), 414–426. Article Google Scholar Download references Acknowledgements We wish to acknowledge the valuable comments from two anonymous referees. Thanks are also due to David Agrawal, Jay Pil Choi, Dave Donaldson,...
The world market for large passenger jet airplanes is an oligopoly dominated by Boeing in the United States and Airbus in Europe. a. Explain why the market equilibrium might involve either a low price for airplanes or a high price for airplanes. b. From ...