Empirical evidence is scarce on whether firms set profit-maximizing prices, as these typically depend delicately on details of difficult-to-observe strategic interactions. To avoid this problem, this ...

Log-in to bookmark & organize content - it's free! A panel discussion was held on the work of philosopher and economist F.A. Hayek. Here Professor Richard Epstein discusses Hayek's view of government ...

Imagine if General Motors, or any other manufacturer, had exclusive rights to sell vehicles in Pennsylvania and that state residents were required by law to buy their vehicles from that monopoly. What ...

To most economists, whether prices seem "high" or "low" is not important. But if a price prevents a buyer and a seller from making a profitable exchange--an exchange that would have left both of them ...

The expense-preference theory of the firm implies that in noncompetitive product markets, managers hire labor beyond the profit-maximizing level. This theory has recently received empirical support ...

Add articles to your saved list and come back to them any time. Sydney Airport has again boosted revenue and profits from the fees it slugs airlines, which the competition regulator says is one of the ...