IDEAS home Printed from https://ideas.repec.org/a/bla/econom/v65y1998i258p285-293.html
   My bibliography  Save this article

The Relative Burden of Monopoly on Households with Different Incomes

Author

Listed:
  • John Creedy
  • Robert Dixon

Abstract

This paper examines the relative burden of monopoly, measured as the (static) loss of consumers’ surplus for different household income levels. Australian Household Expenditure Survey data are used to generate demand elasticities for 14 commodity groups and to obtain estimates of the relative welfare loss for households with different income levels. The welfare loss associated with monopoly power is found to be higher for low‐income households (such as households that depend on government pensions and benefits for their principal source of income) compared with high‐income households. The results provide an indication that, whatever the size of the absolute welfare loss arising from monopoly, there may be a substantial effect on the distribution of welfare.

Suggested Citation

  • John Creedy & Robert Dixon, 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.
    • Handle: RePEc:bla:econom:v:65:y:1998:i:258:p:285-293
    DOI: 10.1111/1468-0335.00128
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-0335.00128
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1468-0335.00128?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sologon, Denisa Maria & O'Donoghue, Cathal & Linden, Jules & Kyzyma, Iryna & Loughrey, Jason, 2022. "Welfare and Distributional Impact of Soaring Prices in Europe," IZA Discussion Papers 15738, Institute of Labor Economics (IZA).
    2. Can, Zeynep Gizem & O'Donoghue, Cathal & Sologon, Denisa Maria & Smith, Darius & Griffin, Rosaleen & Murray, Una, 2023. "Modelling the Distributional Effects of the Cost-of-Living Crisis in Turkey and the South Caucasus: A Microsimulation Analysis," IZA Discussion Papers 16619, Institute of Labor Economics (IZA).
    3. Plamen Mishev & Nedka Ivanova & Philip Kostov, 2004. "Agricultural policy options distinguishing a subsistence sub- sector in Bulgaria," Computational Economics 0409003, University Library of Munich, Germany.
    4. Christopher Decker & Amit Zac & Carola Casti & Amédée von Moltke & Ariel Ezrachi, 2022. "Competition Law Enforcement and Household Inequality in the United Kingdom [The UK’s Wealth Distribution and Characteristics of High-Wealth Households]," Journal of Competition Law and Economics, Oxford University Press, vol. 18(4), pages 922-952.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:econom:v:65:y:1998:i:258:p:285-293. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.