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Distributive and Regional Effects of Monopoly Power

Author

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  • Urzúa, Carlos M.

    (Tecnológico de Monterrey, Campus Ciudad de México)

Abstract

This paper estimates the distributive and regional effects of firms with market power in the case of Mexico. It presents evidence that the welfare losses due to the exercise of monopoly power are not only significant, but also regressive. Moreover, the losses are different for the urban and rural sectors, as well as for each of the states of Mexico, being the inhabitants of the poorest ones the most affected by firms with market power.

Suggested Citation

  • Urzúa, Carlos M., 2009. "Distributive and Regional Effects of Monopoly Power," EGAP Working Papers 2009-04, Tecnológico de Monterrey, Campus Ciudad de México.
    • Handle: RePEc:ega:docume:200904
    as

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    File URL: http://alejandria.ccm.itesm.mx/egap/documentos/EGAP-2009-04.pdf
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    References listed on IDEAS

    as
    1. Deaton, Angus, 1988. "Quality, Quantity, and Spatial Variation of Price," American Economic Review, American Economic Association, vol. 78(3), pages 418-430, June.
    2. Angus Deaton, 1991. "Price Elasticities from Survey Data: Extensions and Indonesian Results," International Economic Association Series, in: Marc Nerlove (ed.), Issues in Contemporary Economics, chapter 10, pages 253-283, Palgrave Macmillan.
    3. McKenzie,George W., 1983. "Measuring Economic Welfare," Cambridge Books, Cambridge University Press, number 9780521248624.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Comisión Nacional de los Mercados y la Competencia (CNMC), 2023. "Guide. Competition against inflation: How competition and efficient regulation help protect the purchasing power of consumers," Colección Estudios de Mercado G-2022-02_ENG, Comisión Nacional de los Mercados y la Competencia (CNMC).
    2. Tania Begazo & Sara Nyman, 2016. "Competition and Poverty," World Bank Publications - Reports 24251, The World Bank Group.
    3. Rodriguez Castelan,Carlos, 2015. "The poverty effects of market concentration," Policy Research Working Paper Series 7515, The World Bank.

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    More about this item

    Keywords

    monopoly; Cournot oligopoly; distributive effects; regional effects; income distribution; goods markets; Mexico;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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