The Pacman conjecture holds that durable-goods monopolists have complete market power and so can exercise perfect price discrimination, thus extracting the total surplus. This is in contrast to the Coase conjecture which holds that a durable goods monopolist has no market power, and so price is equal to the competitive market price.
The Pacman conjecture holds that durable-goods monopolists have complete market power and so can exercise perfect price discrimination, thus extracting the total surplus. This is in contrast to the Coase conjecture which holds that a durable goods monopolist has no market power, and so price is equal to the competitive market price.
Source: Wikipedia "Pacman conjecture" · CC BY-SA 4.0
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