The Case of Duopoly: Industry Structure Is Not a Sufficient Basis for Imposing Regulation
6 Pages Posted: 10 Jan 2012
Date Written: January 9, 2012
Policymakers often assume that there is considerable market power under duopoly and oligopoly. However, theoretical analysis is ambiguous about the nature of duopoly and empirical and experimental analysis reveal many examples of duopolistic markets that are highly competitive, while attempts to broaden those markets could lead to consumer harm. This paper reviews the theoretical and empirical evidence on duopolies and market power.
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