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The effects of imperfect competition and antitrust measures in a three-sector OLG model

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  • Peter J. Stauvermann

    (Changwon National University)

  • Jin Hu

    (Jiaxing University)

  • Ronald R. Kumar

    (RMIT University)

Abstract

In this paper, we examine the outcome of different market structures using a three-sector overlapping generations model for an economy consisting of competitive final good, a competitive intermediate good and an oligopolistic intermediate goods sector. Given an oligopolistic sector, we analyze if an increase of the numbers of competitors will cause an increase of welfare in the steady-state equilibrium. Our analyses show that greater competition will not necessarily lead to an increase of real income and welfare in the long run. Moreover, more competition affects the allocation of input factors and redistributes income from the young to the old generation.

Suggested Citation

  • Peter J. Stauvermann & Jin Hu & Ronald R. Kumar, 2025. "The effects of imperfect competition and antitrust measures in a three-sector OLG model," Journal of Economics, Springer, vol. 146(2), pages 145-186, October.
    • Handle: RePEc:kap:jeczfn:v:146:y:2025:i:2:d:10.1007_s00712-025-00912-2
    DOI: 10.1007/s00712-025-00912-2
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    Keywords

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    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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