search query: @author Panzar, J. C. / total: 5
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| Author: | Panzar, J. C. Rosse, J. N. |
| Title: | Testing for 'monopoly' equilibrium. |
| Journal: | Journal of Industrial Economics
1987 : JUN, VOL. 35:4, p. 443-456 |
| Index terms: | INDUSTRIAL ECONOMICS MONOPOLY EQUILIBRIUM THEORY STATISTICAL METHODS |
| Language: | eng |
| Abstract: | A very general test for "monopoly" is developed. Using standard comparative statics analysis, testable restrictions on the firm's reduced form revenue equation which must be satisfied by profit maximizing firms whose choice are not affected by either strategic interactions or the threat of entry are derived.For an uneffected monopolist,the sum of factor price elasticities of the reduced form revenue equation must be nonpositive.Simple models of oligopolistic, competitive and monopolistically competitive markets are developed for which this test statistic may take on positive values. |
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