Re: Microeconomics of cornering

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

Stigler's story fits the US Steel behavior fairly well.  They set prices
sort of the way that Jim said, then gradually tried to buy out competitors
rather than do anythin to modernize.  Steve Keen's book is a good
recommendation.

On Sat, Aug 02, 2003 at 09:16:36PM -0700, Eugene Coyle wrote:
> I hate to put it bluntly like this, but I don't think you should read
> any of that Industrial Org stuff.
>
> Take a look at Steve Keen's new book, Debunking Economics where he takes
> apart that stuff, including Stigler, et. al.
>
> He also has a web site, I think it is WWW.debunkingeconomics where he
> goes through the supply and demand curves and persuades that it is
> bunkum. Of course I was already persuaded. But he takes the
> neo-classicals on their own static ground and shows how they are wrong.
>
> Gene Coyle
>
> Michael Pollak wrote:
>
> >On Sat, 2 Aug 2003, Devine, James wrote:
> >
> >
> >
> >>this seems related to the model often used in industrial organization of
> >>the dominant firm facing a competitive fringe. The firm takes the supply
> >>curve (quantity supplied at each price) of the competitive fringe for
> >>granted and then acts as if it were a monopoly.
> >>
> >>
> >
> >Can anyone recommend a clear and concise exposition of this model I could
> >read?  Or an introduction to the literature on it?  Any suggestions
> >appreciated.
> >
> >Michael
> >
> >
> >
>

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx