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The prices in not which firm, the qualities of products corrected with allowance for, above, than
At other firms they not begin to acquire its products in it quantity,
Gay l and Brench have compared the prices directly, but have considered, on the basis of the information
The firms-clients, distinctions perceived by buyers in quality.] the new facts
Concerning market weight, seemingly, indicate that the big corporations
Have acquired that the most reliable way to more than to average profits lies through more
Low, than at competitors costs, so, and the prices, on which competitors
It is necessary to sell to remain in business. Competitiveness models
Foretell that the prices are equal to costs of firms with the greatest costs,
Which production is necessary for the market; means, in terms statistical
Possibility that individual industries with few firms can behave and
4. A hypothesis according to which the big firms use advantages
Exclusive possibilities vigorously to get rid of a competitiveness,
Or that they squander the economic possibilities on the unessential
Costs for delegation of authorities - loses a significant part of the
Persuasiveness in the light of that fact that within the limits of branch of profit of the big firms
More than profits of small firms. The big hierarchy attracts the big costs on
Delegation of authorities, than small but if the big hierarchy supplies
Also the big profitability and lower general costs, means, it
Economically more effectively, than small.
Probably, George D.Stigleru posesses the most popular argument in advantage
Hypotheses about importance it [George A. Stigler, "A Theory of Oligopoly",
Journal of Political Economy 72 (February 1964), chap. 5 in The Organization
of Industry (Homewood, Ill.: Richard D. Irwin, 1968)]. It argues
As follows. Monopoly prices maximise profits of sellers, so,
Sellers have stimulus to enter arrangement among themselves, but to arrangement
Interferes that growth of sales at the prices hardly lower, than exclusive,
It is very profitable, so that some sellers will be in infringement of conditions of arrangement
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