By Roger Sherman (auth.), A. P. Jacquemin, H. W. de Jong (eds.)
The current quantity of essays on business association, that are in line with meetings held at Nijenrode and Brussels, differs significantly from its predecessor. much more than within the first quantity the essays reveal the vast scope of commercial association research. in addition to the conventional subject matters resembling economies of scale, monopoly and festival coverage, there are essays on method, on stagflation, and at the courting among commercial struc ture and foreign exchange and alternate rules. The latter subject matters are of growing to be significance. the problem of restructuring industries and the query of even if unfastened alternate or a few degree of defense is extra acceptable are subject matters of accelerating relevance at the present time (and will doubtless stay in years to come as well). the matter of chronic inflation which different essays deal with can also be of significant crisis. except being huge in scope and venturing into new fields, this quantity can also be debatable. Its critical function is a debate approximately welfare features. right here, greater than in natural research, economists are likely to entertain varied issues of view. one of many contributors within the Nijenrode convention, Professor John Blair, who died in December 1976 and whom we honour as having been an lively promoter of this type of assembly, wrote to the editors presently earlier than his loss of life to claim that the 1st quantity had succeeded rather well in acquainting the reader with the result of empirical investigations, significantly on tendencies and degrees of concentration.
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M. Clark's earlier stress on 'overhead costs' is appropriate in this context. 1 0 Most of the stable, profitable dominant firms have large elements of overhead costs, which make price discrimination (1) inevitable, (2) extensive, and (3) difficult to measure and challenge. Where allocable marginal costs are low in many directions, the scope for discrimination is large. Yet issues like these have been neglected because of the preference for analyzing limit pricing by interdependent oligopolists.
7 1177 Change in market power 1948-73 (est. 1 Specific policy cause of change? Exemption Remedy of 1950 0 0 Remedy Remedy of 1951 Consent decree? 5 Lapse of patent? Remedy Source: see Table 1. were mainly among the lesser firms. The largest nine firms hardly changed at all, apart from specific policy effects. During 1948-73, certain other firms rose to join the list, which stood in 1974 roughly as shown in Table 3 (it is not meant to be definitive or comprehensive). The newcomers are primarily IBM in computers, Xerox, aircraft, certain drug firms, and two major newspapers.
New York: Macmillan Co. Becker, Gary S. , New York: National Bureau of Economic Research. Becker, Gary S. (19~5), A Theory of the Allocation of Time, Economic Journal, 75 (September), pp. 493-517. , New York: Macmillan, 1932). Blair, John M. (1972), Economic Concentration, New York: Harcourt Brace Jovanovich. Borch, K. H. : Princeton University Press. THEORY COMES TO INDUSTRIAL ORGANIZATIONS 17 Breit, William and Kenneth G. Elzinga (1973), Antitrust Penalties and Attitudes Toward Risk, Harvard Law Review, 86 (February), pps.