Fall 2021, Volume 2, Number 1
Antitrust Chronicle® – Robinson's Imperfect Competition
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.