Talk:Market power/Archives/2019
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Elasticity of demand
"Note that PED will be negative, so the ratio is always greater than one."
To my understanding PED ≤ 0 . so for values -1 < PED < 0 the ratio can also be smaller than -1. (posted 2019-01-25T18:41:00 by User:Laschmi)
Monopoly vs. oligopoly
On 2019-02-20T15:30:08 User:61.32.79.178 added the following to the section on Oligopoly:
- There is a huge difference between oligopoly and monopoly in that while monopoly market is only controlled by one firm, oligopoly market is controlled by two or more firms and both of these two's entry barrier is high.
This is a statement of opinion, with which I think many serious economists would disagree. First the "entry barrier is high" whether it's only one or a few. Second, I've read assertions by economists that oligopolies often act like monopolies, with each understanding that they will lose more than they gain from honest competition. An important counter example was the 1962 introduction of stainless steel razor blades: There were simply too many companies in the razor blade market to sustain the oligopoly. Virtually all the major razor blade companies world wide had developed stainless steel blades years earlier, but they all knew that introducing such would shrink the market by a factor of 7. Wilkinson was such a tiny player that they gambled that their increase in market share would more than offset the shrinkage of the market.
I am therefore reverting this edit. DavidMCEddy (talk) 16:48, 20 February 2019 (UTC)
Why delete an apparently relevant reference?
@Paul Suuk: Why did you delete the following reference:
- Vatiero Massimiliano (2010). "The Ordoliberal notion of market power: an institutionalist reassessment". European Competition Journal. 6 (3): 689–707. doi:10.5235/ecj.v6n3.689.
I'm not familiar with this reference, but on the surface it looks like it's a credible publication relevant to "Market power gives firms the ability to engage in unilateral anti-competitive behavior.", the sentence it followed. I found the following link for it:
Please explain why you thought this reference should be deleted. I'm reverting this deletion pending an answer.
Thanks, DavidMCEddy (talk) 13:25, 23 April 2019 (UTC)