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Monopoly
Models of imperfect competition, antitrust and regulation
Authors: Dr. Eli Goldstein & Michael Tavor
Book Description
Book Overview
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There is a increasing debate on regulation needs while on the one side of the economic arena large
(mostly multinational) corporations wish to grow and utilize (some would say misuse) their market
power whilst on the other side SMEs, private players and the public also require attention to their
interests. Thus, the need arises for clear and coherent information and knowledge on imperfect
competition, antitrust issues and regulation.
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In this pioneering book, a seasoned consultant (Michael Tavor) is joined by an academic expert (Dr.
Eli Goldstein) and together they guide the readers through the fundamentals of how imperfect
competition works and explain how firms, individuals and regulators behave in these specific
settings.
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This book’s motivation is to bring its holder (may it be a consultant, lawyer, Judge, CEO, CFO or any
other interested reader) a multi-aspect overview on imperfect competition issues, and on
monopolies in particular, with reference to economic, legal and public policy concerns.
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Most chapters of this book are engaged with outlining definitions and concepts related to the
monopolistic firm, its creation and historical origins, natural and unnatural constraints and other
characteristics. Moreover, other resembling entities and imperfect competition situations are
presented and analyzed, including monopsony, brand vs. monopoly, bilateral monopoly,
centralization of market power, and other relevant situations and entities. This broad outline and
thorough analysis allows the reader to gain understanding of important aspects caused by
imperfect competition and its influence on markets and individuals.
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Other chapters of this book outline a variety of antitrust and regulatory issues which accompany the
presence of imperfect competition and monopolistic power in the modern marketplace. The history
and progress of antitrust legislation in several countries is presented (including the US, the UK, the
EU and Israel), with examination of the criticism which accompanied its advancements and
additionally, recent antitrust and regulatory trends are presented and considered.
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Throughout the book, examples and case studies are presented from a wide array of markets
(including energy, banking, transportation, healthcare, food & dairy, steel, sports, retail, insurance
and high-tech) and specific analysis of firms (such as IBM, Microsoft, Google, Intel, Polaroid, JBoss
and others) is offered. Additionally, the book includes appendices which mathematically review the
presented notions.
About the authors:
Dr. Eli Goldstein an expert in privatization, deregulation, financial markets and future contracts. A wellpublished scholar, Dr. Goldstein is a faculty member at the Ashkelon Academic College and an esteemed
lecturer at the Management department at Bar-Ilan University as well as at other academic institutions,
teaching finance, micro- and macro-Economics. Dr. Goldstein serves as Chairman of the Board of an Israeli
mutual fund and is a member in investment committees. Dr. Goldstein holds a PhD in economics from BarIlan University and is a special economic consultant at Tavor Economic Consultants Ltd.
Michael Tavor is one of Israel’s most esteemed consultants, with over 25 years of experience in economic
consulting and business management. Mr. Tavor held a position of an economic advisor to the Ministry of
Finance and was a senior economist at the FICC, the Federation of Israeli Chambers of Commerce. Mr. Tavor
served on numerous Boards of Directors, was a member in investment committees of various pension funds,
steering commissions and strategic forums. Mr. Tavor graduated from the University of Haifa with a Bachelor
degree in Economics and Political Science and a M.Sc. in Economics from the Technion. Mr. Tavor is the
author of numerous economic and finance books and has written hundreds of economic analyses, firm
evaluations and expert opinions. Mr. Tavor also has over 20 years or experience as a distinguished Lecturer
at various universities, including Tel Aviv University and the Technion.
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Monopoly
Models of imperfect competition, antitrust and regulation
Authors: Dr. Eli Goldstein & Michael Tavor
Book Description
Synopsis
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In real life, these are usually no perfect competition situations. Large conglomerates utilize market
power to influence costs, firms with monopolistic power lower production to raise prices and the
typical consumer (along with SMEs and other entities) is forced to cope, sometimes unaware of the
circumstances. This book changes the reader mindset by providing in depth and through
explanation, analysis and overview on imperfect competition and relating entities while providing
enlightening examples and case study which eliminate and clarify how real life competition works.
Imperfect competition is a market structure that does not meet the conditions of perfect
competition. This means that in real life, many markets we know (and that influence our day-to-day
existence) are characterized by one firm (or a limited number of firms) holding substantial market
power and utilizing this power to their advantage (and in most cases, in our disadvantage).
The book commenced by providing definitions and concepts associated with the monopolistic entity.
The book describes how a monopoly is created and how a monopoly makes competitive decisions
while facing other market players (the government, the public). The authors also describe the
monopoly’s limitations while relating to technological and social evolution.
The following chapter describes the characteristics of the monopsony (a market structure in which
there is only one buyer of a certain good) and resulting outcomes in the marketplace. A specific
reference is dedicated to the oligopsony, a market structure in which few buyers of a good exist.
As monopoly is the main subject of this book, specific reference is given to its historical origins:
from ancient times, the middle ages and early modern periods to modern times. Similar detailed
examination is given to antitrust legislation in advances economies such as the US, the EU, and
Britain (as well as a local overview provided on antitrust legislation in Israel).
The following chapters supply a diagnosis of advanced concepts and situations such as monopoly in
a perfectly contestable market, perceived threats of importation, and substitutes. Other issues
concerning monopolistic power, such as branding, monopolistic competition, differentiation and
brand cannibalization, among others. The authors also supply explanations and conclusions on
various issues, including valuation of monopolies and brands, and how to approach and evaluate
monopolistic power. Then, analysis is presented of how a monopoly utilizes its production factors,
including issues such as x-inefficiency influences, resource allocation problems (including labor) and
other relevant issues.
Most of the closing chapters are engaged in analysis and overview on governmental-regulatory
intervention when economic inefficiencies arise. First, the authors describe inefficient market
situations and potential governmental involvement measures. Then, several market situations are
portrayed, some need regulatory intervention while others don’t. Issues concerning market
concentration, control structures (such as pyramids etc.) and monopolistic power in general are
tackled and analyzed. Lastly, a thorough overview on the regulator’s position, role and economic
influence (burden) is outlined.
Throughout the book, 59 specific examples and case studies are presented, originating from a wide
array of markets (such as energy, banking, transportation, healthcare, food & dairy, steel, sports,
retail, insurance and high-tech) and specific firms (including such firms as IBM, Microsoft, Google,
Intel, Polaroid, JBoss and others). As any instruction book engaged with economic issues, it contains
several appendices which mathematically review a wide variety of relevant notions.
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