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Market power and welfare loss

Author

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  • Merino Troncoso, Carlos

Abstract

I estimate welfare loss of market power using consumer loss variation. I estimate demand elasticity of certain goods known to suffer monopolistic power. Based in Urzúa's study I employ data from household expenditure survey of Spain and Deaton ́s methodology to estimate elasticities of demand using expenditure of households. We finally obtain distributive effects of market power in selected sectors.

Suggested Citation

  • Merino Troncoso, Carlos, 2019. "Market power and welfare loss," MPRA Paper 96902, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:96902
    as

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    File URL: https://mpra.ub.uni-muenchen.de/96902/3/MPRA_paper_96902.pdf
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    References listed on IDEAS

    as
    1. Deaton, Angus, 1987. "Estimation of own- and cross-price elasticities from household survey data," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 7-30.
    2. McKenzie,George W., 1983. "Measuring Economic Welfare," Cambridge Books, Cambridge University Press, number 9780521248624.
    3. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    4. Argent,Jonathan Thompson & Begazo Gomez,Tania Priscilla, 2015. "Competition in Kenyan markets and its impact on income and poverty : a case study on sugar and maize," Policy Research Working Paper Series 7179, The World Bank.
    5. Creedy, John & Dixon, Robert, 1998. "The Relative Burden of Monopoly on Households with Different Incomes," Economica, London School of Economics and Political Science, vol. 65(258), pages 285-293, May.
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    Cited by:

    1. Merino Troncoso, Carlos, 2021. "Consumer Demand Estimation," MPRA Paper 105169, University Library of Munich, Germany.

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    More about this item

    Keywords

    welfare loss; inequality; demand elasticity;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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