Talk:Lerner index
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e is demand elasticity
[edit]Moved comment by User:130.166.243.21 off of article page:
"where e is demand elasticity. [Are you sure? My textbook says that equation holds only in the case of a pure monopoly.]
The Lerner Index must be between 0 and 1 for profit-maximizing monopolies."--Bkwillwm 20:36, 20 February 2006 (UTC)
Negative inverse? (DWM)
Examples: ¿NPOV?
[edit]I don't think Microsoft is a good example of monopoly. And web hosting is most definitely a bad example of a highly competitive market. I would rather use conventional examples (like the ones you see on high school or university textbooks) or redirect to the Monopoly article. Unless someone supports them, I will remove this examples. --_N_e_g_r_u_l_i_o 20:12, 12 October 2006 (UTC)
Not just monopolies
[edit]Lerner index can be used to measure the market power of any firm, not just monopolistic firms. Have edited article accordingling
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