Day

December 15, 2025

The Enigmas of Monopoly Power

Market power can be assessed in antitrust cases by two methods often described as “alternatives”. For unilateral conduct, however, they are inconsistent. Courts insist on market shares well above 50%, which entails that only one firm can be a monopolist. Direct measures by examining price-cost margins, however, can sometimes produce two or more “monopolists” in...
Read More