This paper shows how VL Smith has destroyed his own perfect theory. Smith used utility maximization to prove that the last person must take up the balance of a public construction cost. When the resulting equilibrium quantity is different from the given one, a new average quantity breaks up the...

According to Bhagwati the really fundamental innovation in the oligopoly theory came with the realization that oligopoly must deal with ‘potential' competition as distinct from ‘actual' competition. Paolo Sylos Labini's "Oligopoly Theory and Technical Progress" (1957) is considered one of...

Media markets recently have been identified as multisided markets. The application of the theory of multisided markets provides a better understanding of such markets. It enriched the hitherto economic approach and led to new insights and perspectives especially for the antitrust authorities...

In this article advertiser supported media, such as television, are analyzed as an industry selling audiences to advertisers. A simple stylized model is used to demonstrate that increased competition leads to less of a price decline (in extreme cases, maybe even a price increase) than would be...