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1 vote

Judge prosecutor example of Kameinica and Gentzkow

Under the prior, the defendant is more likely to be innocent than guilty. So, without any additional information, the defense attorney in your example need not provide any information. A lot of ...
Michael Greinecker's user avatar
1 vote
Accepted

About the optimal period 1 price in a 2 period scenario for switching costs (Klemperer, 1995)

Note that there seems to be a typo in the second half of the highlighted sentence. It should be "... unless all consumers' demands are considerably higher in period 1 than in period 2." Also ...
VARulle's user avatar
  • 6,900
1 vote

Why can't an individual producer influence market price in perfect competition?

Important assumption in perfect competition is that the number of firm is very large. In fact in many IO models you get perfect competition when number of firms goes to infinity. If the number of ...
1muflon1's user avatar
  • 56.8k
1 vote

Why can't an individual producer influence market price in perfect competition?

It is just an assumption of the model that firms behave as price takers, i.e. as if they have no effect on price. Each firm is assumed to act as if they can sell as much as they like at any given ...
smcc's user avatar
  • 691

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