Abstract
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.
| Original language | English |
|---|---|
| Pages (from-to) | 135-162 |
| Journal | Journal of Post Keynesian Economics |
| Volume | 37 |
| Issue number | 1 |
| Publication status | Published - Oct 2014 |
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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 journal › Article
}
TY - JOUR
T1 - Profiteering and the degree of monopoly in the great recession
T2 - recent evidence from the US and the UK
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 -