If endowed with a pure monopoly
, how might one change the cost of something, be it widgets or U.
This includes the economics of perfect competition, pure monopoly
, and a dominant firm with a fringe of competitors, as well as the classic 1934 index of monopoly power devised by Abba Lerner.
The main achievement of Cournot's theory is the possibility to apply the same principle to different degrees of competition, starting by the pure monopoly
All around the world water privatisation has failed to generate investment because water is a pure monopoly
However, my point is that the net impact of even a pure monopoly
cannot be judged and should not be judged the way it almost always is judged in our lectures and textbooks--that is, exclusively by its impact within the limits of its own market boundaries.
In a pure monopoly
, there is only one seller in a market.
This section considers several models of imperfect competition, beginning with the case of pure monopoly
In the terms of figure 3, consider the change from pure monopoly
(point X) to limit pricing (at point Y).
Not even hard-line Chicagoans had been willing to declare pure monopoly
to be virtuous, rather than probably harmful.
When and if the Baby Bells are freed to enter cable TV in their areas of regional telephone monopoly, the cable business will cease to be one of pure monopoly
as we have today.
For the Herfindahl index a value of one indicates pure monopoly
structure in an industry.
Hence, texts suggest that price discrimination is a pure monopoly
phenomenon, then proceed to provide examples in which monopoly is dubious at best and ludicrous at worst.