The Conventional Wisdom about Cross-Haul
AbstractCurrent proponents of neoclassical analysis sometimes exclude imperfect competition as a serious explanation of certain pricing behavior. The authors in this paper focus on the 1981 Southern Plywood antitrust litigation demonstrating that behavior from that case is readily explained within a traditional monopoly/basing-point pricing model whereas alternative economic explanations claiming price-taking behavior must rely upon external explanatory factors. The authors suggest a simple algebraic model to facilitate distinguishing whether observed pricing is or is not consistent with a price-taking explanation.
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Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 15 (1989)
Issue (Month): 1 (Jan-Mar)
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- R. H. Coase, 1972. "Industrial Organization: A Proposal for Research," NBER Chapters, National Bureau of Economic Research, Inc, in: Economic Research: Retrospect and Prospect Vol 3: Policy Issues and Research Opportunities in Industrial Organization, pages 59-73 National Bureau of Economic Research, Inc.
- Hay, George A & Kelley, Daniel, 1974. "An Empirical Survey of Price Fixing Conspiracies," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 17(1), pages 13-38, April.
- Haddock, David D, 1982. "Basing-Point Pricing: Competitive vs. Collusive Theories," American Economic Review, American Economic Association, American Economic Association, vol. 72(3), pages 289-306, June.
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