Coase Conjecture
Another important contribution of Coase is the Coase Conjecture: an informal argument that durable-goods monopolists do not have market power because they are unable to commit to not lowering their prices in future periods.
Read more about this topic: Ronald Coase
Famous quotes containing the word conjecture:
“What these perplexities of my uncle Toby were,—’tis impossible for you to guess;Mif you could,—I should blush ... as an author; inasmuch as I set no small store by myself upon this very account, that my reader has never yet been able to guess at any thing. And ... if I thought you was able to form the least ... conjecture to yourself, of what was to come in the next page,—I would tear it out of my book.”
—Laurence Sterne (1713–1768)