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Who Bids the Most for Market Power?

Author

Listed:
  • Fort, Rodney
  • Hallagan, William

Abstract

In the traditional industrial organization literature, market structure is an exogenous variable. However, sometimes market structure is a matter of choice. Firms can choose to operate as monopolists, but only if they pay for this right. When market structure is chosen, a natural question is, "Wh at types of firms will pay the price to operate as monopolists, and h ow will they differ from their competitive counterparts?" This paper develops a model which addresses this question and arrives at result s that are novel when compared to the results of the traditional stru cture-conduct-performance paradigm. Copyright 1987 by Oxford University Press.

Suggested Citation

  • Fort, Rodney & Hallagan, William, 1987. "Who Bids the Most for Market Power?," Economic Inquiry, Western Economic Association International, vol. 25(4), pages 671-680, October.
    • Handle: RePEc:oup:ecinqu:v:25:y:1987:i:4:p:671-80
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