The Megacorp and Oligopoly

Download or read book The Megacorp and Oligopoly written by Alfred S. Eichner and published by Cambridge University Press. This book was released on 2008-07-10 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides both an explanation of the inflation which has bedeviled economic policy in the West since the end of World War II and a micro-economic theory to purge Keynesian models of the Walrasian strain derived from Marshall's Principles. By focusing on what is taken to be the representative business firm of the twentieth century - the large corporation or megacorp - the microeconomic model presented in the book reverses the usual assumptions of economic analysis. Instead of assuming the existence of firms with no control over prices, the book examines how the megacorp uses its pricing power to finance its own internal rate of growth. The result is a determinant model of how prices are set under the sort of oligopolistic conditions which prevail in most modern industries throughout the world.