This 42-page .pdf paper analyzes whether an industry with no antitrust policy will converge to monopoly, competition or somewher in between using a dominant firm model with rational agents, endogenous mergers and constant returns to scale production. It finds that mergers are likely only when supply is inelastic or demand is elastic, suggesting that the ability of a dominant firm to raise prices through mopolization is limited. Additionally, as the discount rate increases, it becomes harder to mopolize the industry because the dominant firm cannot commit to not raising prices in the future.
Content: Article
Author: Gautum Gowrisankaran
Source: “Federal Reserve Bank of Minneapolis”
Subject: Economics
Author: Gautum Gowrisankaran
Source: “Federal Reserve Bank of Minneapolis”
Subject: Economics
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I have only read the abstract, but it sounds quite useful for those with a strong interest in economics or for those working on a class project in need of reference material
as a reference source I would prefer to get info and not join another potential mailing list.