Price Leadership & Welfare Losses

Gisser's (1986) research had two basic objectives. The first was to approach from a different perspective the measurement of the deadweight loss in consumer surplus resulting from monopoly activity, while the second was a determination of the probability of collusion among the industry leaders in highly concentrated industries.

Gisser's (1986) research differs from that of most other researchers who examined the deadweight loss in consumer surplus resulting from monopoly activity in the underlying assumption upon which the research was based. Arnold Harberger (1954) and most other researchers who examined the phenomenon proceeded from an assumption that industry leaders in highly concentrated industries confront an infinitely elastic marginal cost curve intersects with an industry demand curve

1 2characterized by unitary elasticity at a competitive price level. Gisser (1986), however, proceeded from an assumption that these same industries confront, instead, a net demand curve, which is defined as the difference between the demand for the industry and the supply of the small fir

. . .
Some common words found in the essay are:
Ekelund Hebert, Arnold Harberger, ARTICLE Consumers', Sam Peltzman, ARTICLE Gisser's, CRITIQUE ARTICLE, Losses Manufacturing, deadweight loss, consumer surplus, Industrial Concentra, deadweight loss consumer, loss consumer, monopoly activity, gisser's 1986, resulting monopoly, highly concentrated, resulting monopoly activity, Economic Review, loss consumer surplus, gisser 1986, Economic Theory, surplus resulting, leaders highly, surplus resulting monopoly, consumer surplus resulting,
Approximate Word count = 1199
Approximate Pages = 5 (250 words per page)

More Essays on Price Leadership & Welfare Losses