Informational Structure and Effciency in Monopoly
AbstractThe paper focuses on efficiency under monopoly. Contrary to common wisdom, nine examples given in the paper show that a Pareto-efficient output in monopoly is possible under both linear and nonlinear pricing. Pareto efficiency can be achieved when consumers are homogeneous as well as heterogeneous. Since Pareo-efficiency is possible under different demand and cost conditions; different pricing strategies; and different degree of consumer heterogeneity, in general, monopoly per se is not the cause for ineficiency.
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Bibliographic InfoPaper provided by EconWPA in its series General Economics and Teaching with number 0307004.
Length: 25 pages
Date of creation: 03 Jul 2003
Date of revision:
Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on HP/PostScript/; pages: 25
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Monopoly; Pareto Efficiency;
Find related papers by JEL classification:
- D42 - Microeconomics - - Market Structure and Pricing - - - Monopoly
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
This paper has been announced in the following NEP Reports:
- NEP-TRA-2003-07-13 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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