It is shown that the standard arguments for a monopoly to persist break down when many units of capacity become available sequentially. The reason is that deterring entry at one st age affects the cost of doing so in later stages. This force can be so powerful that entry is deterred only at the...

This paper examines the effects of auctioning quota licenses when monopoly power exists. Here the sales of licenses will never raise any revenue if domestic and foreign markets are segmented. More surprisingly, the inability to raise revenue is shown to persist even when arbitrage across markets...