IDEAS home Printed from https://ideas.repec.org/p/zbw/esprep/195952.html
   My bibliography  Save this paper

Limit Pricing Oligopoly Market: Evidence from Tamilnadu Politics

Author

Listed:
  • Pazhanisamy, R.

Abstract

Limit pricing oligopoly market is a hypothetical market explained with various hypotheses in the literature which has limited scope for the real world economic evidence and its application which leads the impact of the operation of such market is mostly unknown among the policymakers and academics. The available literature evidences are mostly neglected to explore the scope of such markets conditions and failed to direct appropriate policies. In India among most of the national level parties and in the states levels there are two only have been surviving over the long periods. This trigger the intuition to inquire into answer the questions a) why the political market is appears to be an oligopolistic market? b) How it maintain the limit pricing policy to deter the entry of new ? c) How the share the market? d) Are they collusive oligopolistic or non collusive? e) Are they price leadership oligopolist or not? f) How could they operate in the long run while some of them closed it even within the short run? Since there are very limited attempts only are available to answers this question. This calls for an enquiry by incorporating the micro economics theory with the political system. This paper is attempted to fill this gap in research.

Suggested Citation

  • Pazhanisamy, R., 2019. "Limit Pricing Oligopoly Market: Evidence from Tamilnadu Politics," EconStor Preprints 195952, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:195952
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/195952/1/Dr.Ps.%20Limit%20pricing%20oligopolitics.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eichner, Alfred S, 1974. "Determination of the Mark-up under Oligopoly: A Reply," Economic Journal, Royal Economic Society, vol. 84(336), pages 974-980, December.
    2. Wenders, John T, 1971. "Collusion and Entry," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1258-1277, Nov.-Dec..
    3. Franco Modigliani, 1958. "New Developments on the Oligopoly Front," Journal of Political Economy, University of Chicago Press, vol. 66(3), pages 215-215.
    4. P. J. Curwen, 1976. "The Theory of Oligopoly," Palgrave Macmillan Books, in: The Theory of the Firm, chapter 0, pages 39-40, Palgrave Macmillan.
    5. P. J. Curwen, 1976. "The Theory of the Firm," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-15645-0, September.
    6. Franklin M. Fisher, 1959. "New Developments on the Oligopoly Front: Cournot and the Bain-Sylos Analysis," Journal of Political Economy, University of Chicago Press, vol. 67(4), pages 410-410.
    7. Dale K. Osborne, 1964. "The Role of Entry in Oligopoly Theory," Journal of Political Economy, University of Chicago Press, vol. 72(4), pages 396-396.
    8. Frank Bass, 2006. "Variable Pricing in Oligopoly Markets," The Journal of Business, University of Chicago Press, vol. 79(6), pages 2789-2810, November.
    9. P. J. Curwen, 1976. "The Role of Entry in Oligopoly," Palgrave Macmillan Books, in: The Theory of the Firm, chapter 0, pages 71-80, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antonella Rancan, 2012. "The Origin of the Sylos Postulate: Modigliani’s and Sylos Labini’s Contributions to Oligopoly Theory," Center for the History of Political Economy Working Paper Series 2012-08, Center for the History of Political Economy.
    2. Amelio, Andrea & Giardino-Karlinger, Liliane & Valletti, Tommaso, 2020. "Exclusionary pricing in two-sided markets," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    3. Bagwell, Kyle & Wolinsky, Asher, 2002. "Game theory and industrial organization," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 49, pages 1851-1895, Elsevier.
    4. Petros G. Sekeris & Kevin Siqueira, 2021. "Payoff-Improving Competition: Games with Negative Externalities," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 58(3), pages 455-474, May.
    5. Ricardo Paredes, 1986. "Una Revisión Crítica a la Literatura de Colusión," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 23(69), pages 173-200.
    6. Gala, Paulo & Rodrigues Júnior, Luiz Antonio & Castro, Lavinia Barros de & Carvalho, André Roncaglia de, 2022. "The imperfect competition ladder in economic development: a new map of world trade using complexity analysis," Textos para discussão 559, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
    7. Jael, Paul, 2014. "Full cost, profit et concurrence [Full cost, Profit and Competition]," MPRA Paper 64406, University Library of Munich, Germany.
    8. Andreas Georgiadis & Christos N. Pitelis, 2010. "The Interrelationship between HR, Strategy and Profitability in Service SMEs: Empirical Evidence from the UK Tourism Hospitality and Leisure Sector," CEP Discussion Papers dp0972, Centre for Economic Performance, LSE.
    9. Cheng, Lei, 2022. "Political capital and physical capital: Substitute or complement? Evidence from China's anti-corruption campaign," Emerging Markets Review, Elsevier, vol. 51(PB).
    10. Federico Etro, 2008. "Stackelberg Competition with Endogenous Entry," Economic Journal, Royal Economic Society, vol. 118(532), pages 1670-1697, October.
    11. Melkonian, Tigran A., 1998. "Two essays on reputation effects in economic models," ISU General Staff Papers 1998010108000012873, Iowa State University, Department of Economics.
    12. Hoffmann, Magnus & Schmidt, Frederik, 2007. "Piracy of Digital Products: A Contest Theoretical Approach," MPRA Paper 3289, University Library of Munich, Germany.
    13. Rodolphe Dos Santos Ferreira & Frédéric Dufourt, 2007. "Free entry equilibria with positive profits: A unified approach to quantity and price competition games," International Journal of Economic Theory, The International Society for Economic Theory, vol. 3(2), pages 75-94, June.
    14. Richard Levin, 1974. "Endogenous Technical Change and Barriers to Entry," The American Economist, Sage Publications, vol. 18(2), pages 42-53, October.
    15. Federico Etro, 2006. "Market Leaders and Industrial Policy," Working Papers 103, University of Milano-Bicocca, Department of Economics, revised Nov 2006.
    16. Meng, Dawen & Tian, Guoqiang, 2013. "Entry-Deterring Nonlinear Pricing with Bounded Rationality," MPRA Paper 57935, University Library of Munich, Germany, revised May 2014.
    17. Lawrence J. White, 2013. "Monopoly and Dominant Firms: Antitrust Economics and Policy Approaches," Working Papers 13-13, New York University, Leonard N. Stern School of Business, Department of Economics.
    18. Kyle Bagwell & Garey Ramey, 1991. "Oligopoly Limit Pricing," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 155-172, Summer.
    19. Alessandro Roncaglia, 2015. "Le barriere all’entrata e la politica delle riforme di struttura (Entry barriers and structural reforms)," Moneta e Credito, Economia civile, vol. 68(270), pages 159-171.
    20. Marcella Corsi, 2006. "In memory of Paolo Sylos Labini (1920 - 2005)," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 13(4), pages 607-611.

    More about this item

    Keywords

    Limit Pricing Oligopoly; Oligopolitics; Breaking the Oligopoly Politics; Collusive and Non Collusive Politics; Entry Prevention in Politics; Political Micro Economics;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:195952. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.