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- Title
MONOPOLY POWER AND PRICE RIGIDITIES.
- Authors
Galbraith, J. K.
- Abstract
The article presents information on monopoly power and price rigidities. The term monopoly power is used in a broader sense. By this is meant the power of the seller to exercise control over supply and price, regardless of whether he is enabled to do so as the result of a monopoly position or because of a condition of duopoly, oligopoly or monopolisitic competition in the industry. In short the term refers to the power traditionally associated with monopoly, whatever the means of exercising that power. The rigid prices with which this paper is concerned are prices which underwent infrequent changes or changes of small amplitude, or both, in the years following 1929. At the same time the decrease in demand, which these industries encountered in common with others, was manifested in a sharp decrease in output. It is the thesis of this paper that such a movement in prices and production can occur only under conditions of monopoly power. The term rigidities has become intrenched in both lay and professional vocabulary and to most it signifies a condition of acute distress in the price system.
- Subjects
MONOPOLIES; PRICES; MARKETS; PRODUCTION (Economic theory); CONSUMPTION (Economics); SUPPLY &; demand
- Publication
Quarterly Journal of Economics, 1936, Vol 50, Issue 3, p456
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1882612