Do Outside Options Reinforce or Weaken the Monopoly Power? —An Experiment Review
- 10.2991/sschd-17.2017.100How to use a DOI?
- Outside Option, Monopoly Power, Experiment.
Consumers having outside options are an important continuation for market trading theory. The article discusses the question: allowing consumers to "shop around", does monopoly power sensitively respond to consumers with or without outside options? The related literatures were summarized and showed that there are three distinct opinions: outside options make the monopoly power more prone to compete; the monopoly power more prone to perfect monopoly level and outside options are not immediately relevant to the final trading. As the time over, monopoly power is significantly reduced; it converges to an intermediate value between monopoly and compete; but the convergence rate is not so fast.
- © 2017, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Gui-Rong Shao PY - 2017/09 DA - 2017/09 TI - Do Outside Options Reinforce or Weaken the Monopoly Power? —An Experiment Review BT - Proceedings of the 3rd Annual International Conference on Social Science and Contemporary Humanity Development PB - Atlantis Press SP - 528 EP - 532 SN - 2352-5398 UR - https://doi.org/10.2991/sschd-17.2017.100 DO - 10.2991/sschd-17.2017.100 ID - Shao2017/09 ER -