Baumol, Panzar, and Willig’s Theory of Contestable Markets and Industry Structure: A Summary of Reactions

Amavilah, Voxi Heinrich (2012): Baumol, Panzar, and Willig’s Theory of Contestable Markets and Industry Structure: A Summary of Reactions.

Abstract

This paper summarizes reactions to the theory of contestable markets and industry structure. The reactions came immediately after the theory was published. The summary finds that the proposed theory stands on sound grounds. However, empirically the theory leaves much to be desired especially for practical policy in developing countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: Baumol-Panzar-Willig, perfectly contestable, perfectly sustainable, Ramsey welfare criteria, constestable markets, industry structure
• Subjects: D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L16 - Industrial Organization and Macroeconomics: Industrial Structure and Structural Change ; Industrial Price Indices; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms; D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L29 - Other

References

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