Factor Prices under MonoPoly
نویسندگان
چکیده
This paper explains how grants of monopolistic privileges to capitalists can lower labor and land factors’ prices compared to what would prevail in a free market environment. Monopoly gains of privileged business owners are not only “extracted” from their clients but also from factor owners. We revisit Rothbardian monopoly price theory and extend it to the realm of factor pricing. Monopolistic grants to capitalists make for market situations where both monopoly of demand for factors and monopoly of supply for their product are present and inextricably intertwined. We conclude that grants of privileges to capitalists can trigger an overall downward pressure on original factor prices.
منابع مشابه
Centralized Supply Chain Network Ddesign: Monopoly, Duopoly, and Ooligopoly Competitions under Uncertainty
This paper presents a competitive supply chain network design problem in which one, two, or three supply chains are planning to enter the price-dependent markets simultaneously in uncertain environments and decide to set the prices and shape their networks. The chains produce competitive products either identical or highly substitutable. Fuzzy multi-level mixed integer programming is used to mo...
متن کاملA neglected welfare cost of monopoly - - and most other product market
A neglected effect of monopoly is the distortion in the quantity of resources supplied. Monopoly not only affects the economy's output mix, it also results in factor prices that are below social marginal value products. This latter distortion is shown to be quantitatively important when other policies, such as taxes on labor earnings, also depress factor prices. Under plausible conditions, the ...
متن کاملEquilibria of Prices and Investments in Two-sided Internet Content Delivery Market
The Internet content delivery market has been positioned for tremendous growth. To capture the essentials of pricing structures in this market, we develop an economic model incorporating prices with provider investments in the demand function, and obtain equilibrium prices and investments under both monopoly and competitive settings for transport providers. We also investigate network neutralit...
متن کاملInternational Settlements: A Time for Change
In the late 1970's, when competition was introduced in the United States, competitive forces pushed international telephone prices down. Lower prices resulted, inter alia, in an increase in international calls (and minutes) from the U.S. to countries whose prices were high relative to U.S. prices. This increase in minute volume in turn resulted in a significant increase in settlement payments o...
متن کاملFlow Control , Routing , and Performance with a For - profit Service Provider
We consider a game theoretic framework to analyze traffic in a congested network, where a profit-maximizing monopolist sets prices for different routes. Each link in the network is associated with a flow-dependent latency function which specifies the time needed to traverse the link given its congestion. Users have utility functions defined over the amount of data flow transmitted, the delays t...
متن کامل