Economic Analysis, Anti-trust Law and the Oligopoly Problem

Competition is socially desirable because, in general, in a competitive environment, firms' desire to maximize their profits will force them, in the long run, not only to become as efficient as possible but also to lower their prices to the level of their average (economic) costs.

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Bibliographic Details
Published in:European business organization law review 2000-03, Vol.1 (1), p.41-57
Main Author: Jenny, Frédéric
Format: Article
Language:English
Subjects:
Antitrust laws
Business studies
Commercial law
Competition
Economic analysis
Economic theory
Law
Legal studies
Legal systems
Monopolistic competition
Oligopoly
Organization theory
Online Access:Get full text
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Description
Summary:Competition is socially desirable because, in general, in a competitive environment, firms' desire to maximize their profits will force them, in the long run, not only to become as efficient as possible but also to lower their prices to the level of their average (economic) costs.
ISSN:1566-7529
1741-6205
DOI:10.1017/S1566752900000057