Lighten up, it’s not the end of the world

Many are now worrying about the cost of the Smartmatic-TIM contract.  I suspect it is ridiculous, having been from a contract where the Comelec in effect negotiated with only one seller.  In the economics textbooks, one seller means monopoly.  And a monopoly price is almost always on the “high” side.   In this case, maybe too high??  Who knows?

Here’s some relief, from F and E.

Comelec anyone?
Comelec anyone?
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2 thoughts on “Lighten up, it’s not the end of the world

  1. Not quite. We know little about oligopoly, though the textbooks have such things as Cournot duopolies, etc. But actually, the Comelec deal is strictly speaking a bilateral monopoly (the buyer is also just one). The price that emerges favors the party with greater bargaining power. Guess who?

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