We’ve been having some profitable discussion on the threat of monopoly in a recent post. In this post, I want to clarify a few things, and perhaps add some additional thoughts.
We have established that is impossible to distinguish “competitive prices” from “monopoly prices” because we only observe the market price. The “competitive price” is…
As this late 2010 article predicted, 2011 was indeed a year for mergers. The most noteworthy was AT&T’s attempt to buy T-Mobile. The attempted move by AT&T would have given them an estimated 43% of the market share for cellular phone providers. This number drew the ire of United States regulators which eventually landed AT&T…