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Technology Stocks : Intel Corporation (INTC)

INTC 48.92

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11:49 AM EST

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To: BelowTheCrowd who wrote (171241)	9/27/2002 12:22:46 AM
From: Mo Chips	Read Replies (2) of 186894

Re: "Even a complete monopolist has to set prices so as to maximize returns." Ever taken Econ? It all depends on the elastisity of demand. Right now, I would argue that competition is less of an issue than is demand. Prices could fall by 50% but you wouldn't see an 50% increase in demand. I think where we are now, game theory is better. If I drop my price, what does my competitor do? How does the upstream monopolist behave when the downstream industry is highly competitve and has no pricing power? Sounds like I need to read up on my pareto and nash! Study here: math.princeton.edu Also remember, the lagrangian multipler is the shadow price of the constraint!

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