By Ana Rosado Cubero
Read or Download Barriers to Competition: The Evolution of the Debate (Perspectives in Ecconomic and Social History) PDF
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Extra resources for Barriers to Competition: The Evolution of the Debate (Perspectives in Ecconomic and Social History)
The first trial to develop a theory of behaviour was made at Harvard University by Joan Woodward in 1965. 45 This proposal was to understand how the mechanisms by the organizational process and outcomes work, because of how these groups of people are held together and pursue their own interests. Woodward kept in mind that different interest groups have access and a range of power resources, such as information, skill, expertise and ability to offer rewards and sanctions. She draws up the anatomy of organization of the firm but, like Fayol or Ford, it is only for management.
We keep in mind that it is the beginning of a very long path, unfortunately not always agreeing with law professionals. In 1936, from Harvard University, Donald Wallace wrote a pioneer article about monopolistic competition and public policy, and following the path of Clark and Pigou, he tried to connect monopoly and economic welfare. His argument began with the following words: ‘Where substantial monopolistic elements are operative, competition does not automatically produce the ideal quantitative market relations contemplated by the theory upon which public policy has been based.
12 Technically each company in the industry will face a decreasing demand curve, therefore, to a monopoly in the direction of Marshall. Since a decreasing demand curve means that consumers are indifferent to the supplies of others companies in the same industry. 15 Chamberlin’s model is analysed several years after it was published, Drew Fudenberg and Jean Tirole said that games provide a framework able to formalize some of Chamberlin’s intuitions; the myopic behaviour of firms resultant of the Cournot or Bertrand models could be solved because the theory of repeated games allows ‘cooperation’ to reach an equilibrium.