If endowed with a pure monopoly
, how might one change the cost of something, be it widgets or U.S.
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 polar case is one where there is a pure monopoly
upstream (in manufacturing) and another pure monopoly
downstream (in retailing) and where the upstream monopoly has all of the bargaining power over the price that will be charged for goods or services sold by the upstream firm to the downstream firm.
Shepherd finds 76.7% of the US economy is effectively competitive, 18% is tight oligopoly, 2.8% is dominant firm, and 2.5% is pure monopoly
. Over the ensuing decades, the US economy witnessed some changes: increase in imports, large merger movement of the 1980s, change in some sectors' shares of the GDP, large cut back in antitrust activities, and increase in deregulation during the 1980s, especially during the Reagan administration.
All around the world water privatisation has failed to generate investment because water is a pure monopoly
. Northern Ireland will only ever have one water provider, there will only ever be one stop-cock under your sink and you can't shop around for a better price before turning the tap.
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
The theory relieved all market dominance, even pure monopoly
, of the need to defend itself.
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.