Contestable Markets and the Theory of Industry Structure |
Contents
Normative and Behavioral Positive Elements in the Analysis | 8 |
2D Existence and Optimality of Sustainable Industry Configurations | 32 |
3A Ray Average Cost | 48 |
Copyright | |
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analysis assumption average cost curve Baumol behavior capital Chapter competitive equilibrium concept construction cost complementarities cost function cost surface cost-minimizing cross subsidy definition demand functions discussion economies of scope efficient entry barriers entry costs equal example exist Figure firm's firms producing fixed costs hyperplane implies incumbent firms industry configuration industry cost industry output industry structure industry's input prices integer intertemporal investment Journal of Economics locus marginal cost market demand minimization minimum monopolist multiproduct firm natural monopoly number of firms oligopoly optimal output vector p₁ Panzar perfect competition perfectly contestable markets period permits potential entrants price vector product set product-specific profitable entry Proof Proposition quantities Ramsey optimum Ramsey prices ray average cost relevant requires result returns to scale revenues scale economies single-product subadditivity sufficient sunk costs sustainable configuration sustainable prices tion total cost trans-ray convexity translog unsustainability Willig y₁ yields zero