Profiteering and the degree of monopoly in the great recession: recent evidence from the US and the UK

J R Branston, Keith Cowling, P R Tomlinson

Research output: Contribution to journalArticle

  • 4 Citations

Abstract

While the onset of recession may lead some oligopolistic firms to
engage in price-cutting behavior, we argue this is likely to be only a temporary phenomenon. As the recession deepens, firms will find themselves with (unplanned)
excess capacity, which will increase the mutual benefits of collusion and hence the degree of monopoly is likely to rise. To support this proposition, and adopting a largely heterodox framework, we consider some historical evidence and present some recent data for both U.S. and UK manufacturing and UK retail during the current prolonged slump that has been labeled the “Great Recession.” Such behavior has significant implications for economic recovery.
LanguageEnglish
Pages135-162
JournalJournal of Post Keynesian Economics
Volume37
Issue number1
StatusPublished - Oct 2014

Fingerprint

Monopoly
Recession
Great Recession
Excess capacity
Retail
Collusion
Manufacturing
Economic recovery

Keywords

  • Degree of monopoly
  • price cost margin
  • economic downturn
  • collusion
  • excess capacity

Cite this

Profiteering and the degree of monopoly in the great recession : recent evidence from the US and the UK. / Branston, J R; Cowling, Keith; Tomlinson, P R.

In: Journal of Post Keynesian Economics, Vol. 37, No. 1 , 10.2014, p. 135-162.

Research output: Contribution to journalArticle

@article{5bbafb2e262842b48c2a257056787a61,
title = "Profiteering and the degree of monopoly in the great recession: recent evidence from the US and the UK",
abstract = "While the onset of recession may lead some oligopolistic firms toengage in price-cutting behavior, we argue this is likely to be only a temporary phenomenon. As the recession deepens, firms will find themselves with (unplanned)excess capacity, which will increase the mutual benefits of collusion and hence the degree of monopoly is likely to rise. To support this proposition, and adopting a largely heterodox framework, we consider some historical evidence and present some recent data for both U.S. and UK manufacturing and UK retail during the current prolonged slump that has been labeled the “Great Recession.” Such behavior has significant implications for economic recovery.",
keywords = "Degree of monopoly, price cost margin , economic downturn, collusion , excess capacity",
author = "Branston, {J R} and Keith Cowling and Tomlinson, {P R}",
year = "2014",
month = "10",
language = "English",
volume = "37",
pages = "135--162",
journal = "Journal of Post Keynesian Economics",
issn = "0160-3477",
publisher = "M.E. Sharpe Inc.",
number = "1",

}

TY - JOUR

T1 - Profiteering and the degree of monopoly in the great recession

T2 - Journal of Post Keynesian Economics

AU - Branston, J R

AU - Cowling, Keith

AU - Tomlinson, P R

PY - 2014/10

Y1 - 2014/10

N2 - While the onset of recession may lead some oligopolistic firms toengage in price-cutting behavior, we argue this is likely to be only a temporary phenomenon. As the recession deepens, firms will find themselves with (unplanned)excess capacity, which will increase the mutual benefits of collusion and hence the degree of monopoly is likely to rise. To support this proposition, and adopting a largely heterodox framework, we consider some historical evidence and present some recent data for both U.S. and UK manufacturing and UK retail during the current prolonged slump that has been labeled the “Great Recession.” Such behavior has significant implications for economic recovery.

AB - While the onset of recession may lead some oligopolistic firms toengage in price-cutting behavior, we argue this is likely to be only a temporary phenomenon. As the recession deepens, firms will find themselves with (unplanned)excess capacity, which will increase the mutual benefits of collusion and hence the degree of monopoly is likely to rise. To support this proposition, and adopting a largely heterodox framework, we consider some historical evidence and present some recent data for both U.S. and UK manufacturing and UK retail during the current prolonged slump that has been labeled the “Great Recession.” Such behavior has significant implications for economic recovery.

KW - Degree of monopoly

KW - price cost margin

KW - economic downturn

KW - collusion

KW - excess capacity

UR - http://www.mesharpe.com/mall/results1.asp?ACR=pke

M3 - Article

VL - 37

SP - 135

EP - 162

JO - Journal of Post Keynesian Economics

JF - Journal of Post Keynesian Economics

SN - 0160-3477

IS - 1

ER -