The standard economic theory of monopoly assumes, unrealistically, that all units of a good or service must be sold at the same price. The remedy for this serious flaw in the theory is for economists to treat price discrimination much more centrally and seriously.

Stephen Shmanske is a Research Fellow at the Independent Institute and Professor Emeritus of Economics in the College of Business and Economics at California State University, East Bay.
Antitrust, Competition, and MonopolyBusiness and EntrepreneurshipEconomyFree Market EconomicsPublic ChoiceRegulation
Other Independent Review articles by Stephen Shmanske
Fall 1996 Information Asymmetries in Health Services