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Durable-goods Monopolist
In industrial organization and in particular monopoly theory, a durapolist or durable good monopolist is a producer that manipulates the durable goods, durability of its product. The term was coined by antitrust scholar Barak Orbach. The concept is used to explain how durable good manufacturers overcome the durability problem of their products and persuade consumers to purchase new goods. The concept utilizes a monopolist to simplify explanations regarding product durability. Overview Once a durable-good manufacturer sells a product to a consumer, it faces a challenge to convince this consumer to purchase another good. A consumer needs one refrigerator, one razor, a limited number of shirts, and so forth. Durability, therefore, may mean limited prospects for businesses. Ronald Coase argued that because of the durability problem a durable-good monopolist may not be able to exploit its market position and charge monopolistic prices. His thesis is known as the Coase Conjecture. The dura ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Industrial Organization
In economics, industrial organization is a field that builds on the theory of the firm by examining the structure of (and, therefore, the boundaries between) firms and markets. Industrial organization adds real-world complications to the perfectly competitive model, complications such as transaction costs, limited information, and barriers to entry of new firms that may be associated with imperfect competition. It analyzes determinants of firm and market organization and behavior on a continuum between competition and monopoly, including from government actions. There are different approaches to the subject. One approach is descriptive in providing an overview of industrial organization, such as measures of competition and the size- concentration of firms in an industry. A second approach uses microeconomic models to explain internal firm organization and market strategy, which includes internal research and development along with issues of internal reorganization and rene ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |