D uring the 1930s, the work of Robinson and Chamber!in resulted in a revitalization of economic theory. While classical and neoclassical theory provided a useful framework for economic analysis, the theories of perfect competition and pure monopoly had become inadequate as explanations of the contemporary business scene. The theory of perfect competition assumes homogeneity among the components...

Applying a framework of perfect competition under uncertainty, we contribute to the discussion of whether or not ad valorem taxes and specific taxes are equivalent. While this equivalence holds without price uncertainty, we show that ad valorem taxes and specific taxes are “almost never” equivalent in the presence of uncertainty if we demand equivalence to hold pathwise. Since we obtain this re...

The recent collapse of bandwidth markets motivates our study. We describe the economic framework for such a market. Examples demonstrate the problems in finite markets in which bandwidth trades in indivisible units. Competitive equilibria exist under the continuum model of perfect competition. We explore the countably inifinite economy as a model of perfect competition for such markets. Finally...

We analyze the impact of vertical integration when a monopolistic producer can make a capital commitment before deciding on output. For the vertically separated industry structure, we ̄nd that opportunism resulting from competition between retailers leads to a longrun underinvestment in capital. With vertical integration, the capital investment is e±cient but output is monopolistically restrict...

Deligonul and Qavu^gil (1997) conduct a paradigm-level analysis of resource-advantage (R-A) theory. They argue that (1) Hunt and Morgan (1995) offer resource-advantage theory as a replacement for perfect competition theory, (2) a successful challenger to any theory must come from a new paradigm, (3) but both perfect competition and RA theory come from the same paradigm. Therefore, (4) the repla...

“Strategic Nonlinear Income Tax Competition with Perfect Labor Mobility”

The economic effects of environmental taxes depend on the market structure. Under imperfect competition with free entry and exit, environmental taxes have an impact on economies of scale by changing the number and size of firms. Whether economies of scale rise or fall in a particular industry depends on induced changes in the price elasticity of demand. Because export demand is more price elast...