Recent Developments in the Theory of Limit-Pricing

A. Koutsoyiannis
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A. Koutsoyiannis: University of Waterloo

Chapter 14 in Modern Microeconomics, 1975, pp 305-322 from Palgrave Macmillan

Abstract: Abstract Sylos-Labini1 developed a model of limit-pricing based on scale-barriers to entry. His model is clumsy, due to its unnecessarily stringent assumptions and the use of arithmetical examples. However, his analysis of the economies-of-scale barrier is more thorough than that of Bain. He highlighted the determinants of the limit price and discussed their implications, thus providing the basis for Modigliani’s more general model of entry-preventing pricing.

Keywords: Small Firm; Large Firm; Plant Size; Demand Curve; Limit Price (search for similar items in EconPapers)
Date: 1975
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15603-0_14

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DOI: 10.1007/978-1-349-15603-0_14

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