This book develops a new monopoly theory based on Hotelling’s cage model. The new single-seller model—more pragmatically—assumes a positive production cost, yet the firm can impose any price on its consumers. The monopolist holds consumers captive through geographical means or other barriers, rendering their demand curve practically vertical. Although the monopolist can abuse the price policy, this book advises restraint, lest it entice competitors and destroy its monopoly status. The prac...

Up till now, Economics is written in p-q 2 dimensions. This book includes the space variable and makes Economics 3-dimensional. It then overhauls all economic theories, especially the competition theories: monopoly demand is more elastic, colluded duopoly covers the whole market; kinked demand is redundant; etc.This book is suitable for courses like Microeconomics, Customer Relation Management, Industrial Organisation, etc.

Utility companies are monopolistic, but they must produce at full capacity. Therefore, they are unable to pursue maximum profits by textbook standards. Also, when faced with peak and off-season demand, many ot them choose to implement price differentiation. Were it not for their exclusive position, such behavior would be self-destructive. This book devises a simple utility pricing policy that allows full capacity production, prevents bankruptcies, regulates peak and off-peak demand, and en...

This book reproduces and corrects Hotelling’s “Stability in Competition”. His setup is contradictory and incomplete: he uses monopoly theory to explain competition, and fails to include production cost. This book introduces supply function to the two competitive firms, to come to the same stability conclusion. It also disproves Hotelling’s exploitation strategy, and offers a more profitable alternative.

Is road the same as traffic? Up till now, economics has treated road and traffic as one. Instead, this book handles them separately, but the two are linked together by a key element: toll, even a zero one. Is road private or public? This book shows that the distinction is not so simple. This book covers 3 road-or-traffic economists and connects their piecemeal writings to form a complete theory of road and traffic. This book detests all the existing notions of toll, especially congestion t...

Modigliani and Miller (1958) advocated more borrowing for higher rate of return. This paper uses FinTech to update their theorem. It also proves that FinTech’s multiplier is more magical than the deposit one.

Merger & Acquisition can enlarge a business to take advantage of the so-called economies of scale, but there is another conspiracy. This book teaches you how to raid a company, poor or rich, and even your own company. But if you don’t want to be a raider, do you still buy or keep those stocks?

Karl Marx set profit to zero to obtain some maximum interest rate and called it profit rate. He further argued that interest rate must be lower than profit rate. That is Marx’s interest rate theory. This book disproves Marx’s profit rate, and hence his interest rate theory. It also advocates abolishing internal rate of return.

The current context of Economics is useless, for it cannot explain even intuition. It derives only a backward-bending supply curve; its demand curve can even be positive. Its business firms make no profit, and are afraid of competition. Welfare, as defined by Pareto, is merely the repeat statement of a stagnant production possibility curve.This book corrects all these errors, to make Economics useful, and its firms competitive and profitable. Profit is the energy for sustained grow...

If the world is free, you can pursue maximum of your objective at will. But you live in a world of limited resources, so Lagrange Mathematics helps you attain the constrained maximum. This book reveals many contradictions: constrained maximum has no constraint; cost is not just negative; a higher utility level may mean a larger welfare loss; etc. Perhaps, you have misunderstood the word “free”. It does not mean free of charge, but means that you are free to hire any optimal amount of input...

What is business cycle? It is economic forecast. Forecasting is fortune telling; it is superstition; it is not science. This book reveals the true face of several great economic forecast models.

Demand is already a marginal revenue function, and cannot be used to fabricate another marginal revenue function. Hence, everything you know, so far, about monopoly is wrong.