The idea that an industry with sunk costs may be contestable even in the absence of long-term contracts has received little attention from formal economic theory yet is popular among monopolists facing antitrust suits. The paper formally illustrates the argument. In an infinitely repeated game,...

In this paper the IBIS enterprise database is used to estimate the size of the static welfare loss (particularly in the form of lost consumer surplus) due to the presence of monopoly elements in Australia.

This paper examines the relative burden of monopoly, measured using the equivalent variation, for different household income levels. Inequality measures are calculated using the complete distribution of equivalent incomes, for all households in the Australian household expenditure survey. The...

This paper demonstrates that low (below marginal cost) interconnect or access charges can be used to sustain high subscription prices in an environment of network competition with two-part tariffs and price discrimination. This result stands in contrast to other results in the literature...