Electronic Resource
Springer
Empirica
26 (1999), S. 1-9
ISSN:
1573-6911
Keywords:
Monopoly
;
welfare loss
;
long-run competition
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract Irrespective of the merit of any previous approaches to assess the deadweight loss due to monopoly they are all static in character and disregard the long term effects of monopoly power. Taking into account the long run consequences of monopoly power within the framework of the new growth theory yields startling new insights. In contrast to the Schumpeterian view that there is a tradeoff between static inefficiency and dynamic progressiveness monopoly power is shown to entail not only static welfare losses but also to exert an adverse influence on economic growth. Once this is granted the long run welfare loss due to monopoly can be shown to dwarf the static losses so far treated in the economics literature.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1006967911425
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