‘Structure-Oriented’ Theories of the Market: Perfect Competition and Industrial Organisation

2017 ◽  
pp. 63-63
Author(s):  
Mehmet Barca
Keyword(s):  
Perfect Competition ◽  
Industrial Organisation

Relation-Based Governance and Competition

2017 ◽  
Author(s):  
Avinash Dixit
Keyword(s):  
Spatial Model ◽  
Monopolistic Competition ◽  
Perfect Competition ◽  
Alternative Methods ◽  
Fixed Costs ◽  
Relational Governance ◽  
Dead Weight ◽  
Small Communities ◽  
Information And Communication ◽  
Size Of Firms

If formal institutions of contract governance are absent or ineffective, traders try to substitute relational governance based on norms and sanctions. However, these alternatives need good information and communication concerning members’ actions; that works well only in relatively small communities. If there are fixed costs, the market has too few firms for perfect competition. The optimum must be a second best, balancing the effectiveness of contract governance and dead-weight loss of monopoly. This chapter explores this idea using a spatial model with monopolistic competition. It is found that relational governance constrains the size of firms and can cause inefficiently excessive entry, beyond the excess that already occurs in a spatial model without governance problems. Effects of alternative methods of improving governance to ameliorate this inefficiency are explored.

Consistent Comparisons Between Monopoly and Perfect Competition

1992 ◽  
Vol 23 (3) ◽  
pp. 255-261
Author(s):  
Susan E. Skeath ◽  
Ann D. Velenchik ◽  
Len M. Nichols ◽  
Karl E. Case
Keyword(s):  
Perfect Competition

Patinkin, Perfect Competition, and Unemployment Disequilibria

1964 ◽  
Vol 31 (2) ◽  
pp. 121 ◽  
Author(s):  
D. Calvin Gogerty ◽  
Gordon C. Winston
Keyword(s):  
Perfect Competition

Perfect Competition and the Core

1982 ◽  
Vol 49 (1) ◽  
pp. 15 ◽  
Author(s):  
Andreu Mas-Colell
Keyword(s):  
Perfect Competition ◽  
The Core

Macroeconomics with Non-Perfect Competition: A Reply

1982 ◽  
Vol 92 (367) ◽  
pp. 706
Author(s):  
Yew-Kwang Ng
Keyword(s):  
Perfect Competition
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