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THE POWER’S MECHANISM OF A MONOPOLY IN A MARKET ECONOMY Antoniu Predescu, Spiru Haret University Iuliana Predescu, Romanian- American University Bucharesti Stela Aurelia Toader, Romanian- American University Bucharest Mihai Aristotel Ungureanu , Romanian- American University Bucharest

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Author Info

  • Antoniu Predescu

    (Spiru Haret University)

  • Iuliana Predescu

    (Romanian - American University Bucharest)

  • Stela Aurelia Toader

    (Romanian - American University Bucharest)

  • Mihai Aristotel Ungureanu

    (Romanian - American University Bucharest)

Abstract

Monopolies make their presence felt in a market economy, not necessarilythrough 100% ownership control of a market, nor less, because there is a law thatsanction its existence; in most cases, the existence of a monopoly and hence its corollary,i.e. monopoly power, has as the primary cause the presence of market imperfections, thatis if those are present on the long term, become state of fact. Thus, in our approach, weconsider that to bet appropriate to release the mechanism of a monopoly, based on amathematical tool, which begins from the immutable economic concepts of monopoly.

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Bibliographic Info

Article provided by Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia in its journal Annales Universitatis Apulensis Series Oeconomica.

Volume (Year): 2 (2009)
Issue (Month): 11 ()
Pages: 13

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Handle: RePEc:alu:journl:v:2:y:2009:i:11:p:13

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Keywords: monopoly; monopolist; elasticity; demand;

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  1. Schmalensee, Richard, 1981. "Output and Welfare Implications of Monopolistic Third-Degree Price Discrimination," American Economic Review, American Economic Association, vol. 71(1), pages 242-47, March.
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