Back to Course OutlineDevelopment Economics
Lesson· Bottlenecks, Linkages and Intermediate Goods· 1 of 6
Double Marginalization Problem
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.