The Conventional Wisdom about Cross-Haul

Phillip Giffin, Bruce Hutchinson and Joseph Kushner
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Phillip Giffin: University of Tennessee
Bruce Hutchinson: University of Tennessee
Joseph Kushner: Valdosta State College

Eastern Economic Journal, 1989, vol. 15, issue 1, 29-34

Abstract: Current proponents of neoclassical analysis sometimes exclude imperfect competition as a serious explanation of certain pricing behavior. The authors in this paper focus on the 1981 Southern Plywood antitrust litigation demonstrating that behavior from that case is readily explained within a traditional monopoly/basing-point pricing model whereas alternative economic explanations claiming price-taking behavior must rely upon external explanatory factors. The authors suggest a simple algebraic model to facilitate distinguishing whether observed pricing is or is not consistent with a price-taking explanation.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:15:y:1989:i:1:p:29-34

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