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Business
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| Number of pages / Number of words: |
3 / 632 |
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51). Allen and Hellwig object to the PC model, especially since the model assumes individual firms have "absolutely no market power" (Allen and Hellwig, 1986, p. 387). Allen and Hellwig ascertain that today's functioning market is strongly contingent on the number of companies that exist, whether only two companies in the market or over 2000 companies in the market (1986)...
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Unlike PC's assumptions, today's market power is "completely neutralized by the particular strategic interactions among competitive firms" (Allen and Hellwig, 1986, p. 387). Some economists argue that the PC model is only a distant approximation of real markets since few, if any, of the PC assumptions exist in today's real markets (Allen and Hellwig, 1986)...
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