Preprint
Is There Excess Capacity Really?
Excess capacity is viewed as a distinctive feature and an essential inefficiency of monopolistic competition as the large-group case of imperfect competition. Using a simple geometrical approach and studying the demand and cost curves faced by the individual firm, we find that there is little potential for excess capacity in monopolistically competitive markets, opposite to the common perception and wide coverage in the literature. We see monopolistic competition as the true type of competition in the presence of transaction costs where perfect competition is a hypothetical and ideal benchmark which cannot exist under positive transaction costs.
- Sprache
-
Englisch
- Erschienen in
-
Journal: Theoretical and Practical Research in Economic Fields ; ISSN: 2068–7710 ; Volume: 6 ; Issue: 2 (12) (Winter) ; Pages: 127-143
- Klassifikation
-
Wirtschaft
Organizational Behavior; Transaction Costs; Property Rights
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
- Thema
-
excess capacity
monopolistic competition
oligopoly
transaction costs
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Todorova, Tamara
- Ereignis
-
Veröffentlichung
- (wer)
-
ASERS Publishing
- (wo)
-
s.l.
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Preprint
Beteiligte
- Todorova, Tamara
- ASERS Publishing
Entstanden
- 2015
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