Spatial Monopoly, Natural Monopoly, Pure Profits, and Land Rents
We ask if pure profits obtained in our earlier model might be dissipated by forces excluded. We consider the possibility that the profits will be converted into land rents and usurped by landlords and conclude this will not happen. Second, we consider new firms entering to drive existing firms out and drive profits to zero. We conclude this will happen under certain circumstances but in an important subclass of circumstances pure profits persist indefinitely in free-entry equilibrium, and will not be competed away due to competition from potential or actual new entrants.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1977|
|Date of revision:|
|Contact details of provider:|| Postal: Kingston, Ontario, K7L 3N6|
Phone: (613) 533-2250
Fax: (613) 533-6668
Web page: http://qed.econ.queensu.ca/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:qed:wpaper:265. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock)
If references are entirely missing, you can add them using this form.