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Monopoly Spillover Effects

In: Multi-Market Antitrust Economics

Author

Listed:
  • Scott Gilbert

    (Southern Illinois University)

Abstract

In a market that goes from many suppliers to just one supplier, the advent of monopoly has an immediate effect: change in supply in that market. The pure monopoly model, discussed in Chap. 2 , represents the monopoly effect in a given market. The effect is anti-competitive: price rises above the many-supplier competitive level, and goods quantity falls, doubly bad for consumers. The simplicity of the pure monopoly model is a virtue but also limits the range of behavior and outcomes that can be discussed within it.

Suggested Citation

  • Scott Gilbert, 2018. "Monopoly Spillover Effects," Quantitative Perspectives on Behavioral Economics and Finance, in: Multi-Market Antitrust Economics, chapter 3, pages 37-49, Palgrave Macmillan.
    • Handle: RePEc:pal:qpochp:978-3-319-69386-6_3
    DOI: 10.1007/978-3-319-69386-6_3
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