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Recent Developments in the Theory of Limit-Pricing

In: Modern Microeconomics

Author

Listed:
  • A. Koutsoyiannis

    (University of Waterloo)

Abstract

Sylos-Labini1 developed a model of limit-pricing based on scale-barriers to entry. His model is clumsy, due to its unnecessarily stringent assumptions and the use of arithmetical examples. However, his analysis of the economies-of-scale barrier is more thorough than that of Bain. He highlighted the determinants of the limit price and discussed their implications, thus providing the basis for Modigliani’s more general model of entry-preventing pricing.

Suggested Citation

  • A. Koutsoyiannis, 1975. "Recent Developments in the Theory of Limit-Pricing," Palgrave Macmillan Books, in: Modern Microeconomics, chapter 14, pages 305-322, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-349-15603-0_14
    DOI: 10.1007/978-1-349-15603-0_14
    as

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