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Antitrust Chronicle® – Robinson’s Imperfect Competition

BY | October 14, 2021

Dear Readers, Sometimes perfection can be the enemy of the good. Most economists idealize the notion of “perfect competition,” whereby any profit-maximizing producer faces a market price equal to its…

Dear Readers,

Sometimes perfection can be the enemy of the good.

Most economists idealize the notion of “perfect competition,” whereby any profit-maximizing producer faces a market price equal to its marginal cost. An exception, however is the work of British economist, Joan Robinson, who noted that sometimes imperfect competition can be more welfare-maximizing than the Platonic ideal.

Indeed, in reality, outside economics textbooks, idealized conditions are rarely reproduced. Nonetheless, t

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