Document Type
Book Chapter
Publication Date
3-1998
Editor(s)
Fred S. McChesney
ISSN
9780471970743
Publisher
Wiley
Language
en-US
Abstract
We examine the problem of measuring market power when the firm has monopoly power in the output market and monopsony power in the input market - a case we refer to as 'dual-market' power. We show how the Lerner index, which measures the mark-up over the marginal cost, can be modified to reflect the firm's ability to set price above the competitive level.
Recommended Citation
Keith N. Hylton & Mark Lasser,
Measuring Market Power When the Firm Has Power in the Input and Output Markets
,
in
Economic Inputs, Legal Outputs: The Role of Economists in Modern Antitrust
131
(Fred S. McChesney ed.,
1998).
Available at:
https://scholarship.law.bu.edu/faculty_scholarship/288
