Kinky running
Tom Weisskopf asked what would explain the fact that, despite the lower cost of producing Nikes etc., the price hasn't fallen and monopoloy profits arebeing made despite potential competition. One wonders if this does not fit very nicely into Sweezy's kinked (oligopoly) demand curve where, despite falling marginal costs, prices in the oligopoly sector are retained to prevent price competition. The hiring of Jordan et al. merely ensures that Nikes and their oligopolistic rivals have a *different* product from no-name competitors. Paul Phillips, U of Manitoba
Kinky running
Tom Weisskopf asked what would explain the fact that, despite the lower cost of producing Nikes etc., the price hasn't fallen and monopoloy profits arebeing made despite potential competition. One wonders if this does not fit very nicely into Sweezy's kinked (oligopoly) demand curve where, despite falling marginal costs, prices in the oligopoly sector are retained to prevent price competition. The hiring of Jordan et al. merely ensures that Nikes and their oligopolistic rivals have a *different* product from no-name competitors. Paul Phillips, U of Manitoba