| Summary: | In this study a macro model is outlined in which noncompetitive
as well as competitive product price behaviour can be incorporated
and the macro implications compared. A variety of non-competitive pricing models are considered
and on the basis of these (and in conjunction with a chapter linking
the micro to the macro analysis), it is argued that non-competitive pricing is potentially important in a macro model. It can generate macro relative share, price, and output behaviour different from that generated by price - equals - marginal cost competitive behaviour. In the empirical investigations of Canadian manufacturing
industries, evidence of non-competitive price behaviour is found. The pro-cyclical standard competitive behaviour of gross-margins (mark-ups on variable costs) is not generally observed. Combining the theoretical with the empirical results, it is concluded that non-competitive pricing is not only potentially important,
but of actual importance because of the empirical significance of non-competitive price behaviour. The importance of this for macro policy is briefly considered in the final chapter. === Arts, Faculty of === Vancouver School of Economics === Graduate
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