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Lesson· Bottlenecks, Linkages and Intermediate Goods· 1 of 6

Double Marginalization Problem

Alex Tabarrok
Alex TabarrokGeorge Mason University

This short video covers the double marginalization problem. The problem is what happens to social welfare, prices, and profits when one monopoly sells to another monopoly. It is a classic problem with applications in industrial organization, innovation policy, and development.

CC BY-ND 4.0 License