Monopoly innovation and welfare effects
In this paper we study the welfare effect of a monopoly innovation. Unlike many partial equilibrium models carried out in previous studies, general equilibrium models with non-price-taking behavior are constructed and analyzed in greater detail. We discover that technical innovation carried out by a monopolist could significantly increase the social welfare. We conclude that, in general, the criticism against monopoly innovation based on its increased deadweight loss is less accurate than previously postulated by many studies.
|Date of creation:||2010|
|Contact details of provider:|| Postal: Kiellinie 66, D-24105 Kiel|
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/
More information through EDIRC
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.:
- Flavio Delbono & Vincenzo Denicolo, 1991.
"Incentives to Innovate in a Cournot Oligopoly,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 106(3), pages 951-961.
- Neary, Hugh M., 1992. "Some general equilibrium aspects of a labor-managed economy with monopoly elements," Journal of Comparative Economics, Elsevier, vol. 16(4), pages 633-654, December.
- Hill, Martyn & Waterson, Michael, 1983. "Labor-managed Cournot oligopoly and industry output," Journal of Comparative Economics, Elsevier, vol. 7(1), pages 43-51, March.
- Yoon-Ho Alex Lee & Donald J. Brown, 2005. "Competition, Consumer Welfare, and the Social Cost of Monopoly," Cowles Foundation Discussion Papers 1528, Cowles Foundation for Research in Economics, Yale University.
- Hansen, Claus Thustrup, 1999. "Second-best antitrust in general equilibrium: a special case," Economics Letters, Elsevier, vol. 63(2), pages 193-199, May.
- Michael Reksulak & William F. Shughart & Robert D. Tollison, 2008. "Innovation and the opportunity cost of monopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 619-627.
- David Schwartzman, 1960. "The Burden of Monopoly," Journal of Political Economy, University of Chicago Press, vol. 68, pages 627-627.
- Bergson, Abram, 1973. "On Monopoly Welfare Losses," American Economic Review, American Economic Association, vol. 63(5), pages 853-870, December.
- Kay, J. A., 1983. "A general equilibrium approach to the measurement of monopoly welfare loss," International Journal of Industrial Organization, Elsevier, vol. 1(4), pages 317-331, December.
- Williamson, Oliver E, 1969. "Allocative Efficiency and the Limits of Antitrust," American Economic Review, American Economic Association, vol. 59(2), pages 105-118, May.
- Jenny, Frederic & Weber, Andre-Paul, 1983. "Aggregate Welfare Loss Due to Monopoly Power in the French Economy: Some Tentative Estimates," Journal of Industrial Economics, Wiley Blackwell, vol. 32(2), pages 113-130, December.
- Neary, Hugh M., 1984. ""Labor-managed cournot oligopoly and industry output": A comment," Journal of Comparative Economics, Elsevier, vol. 8(3), pages 322-327, September.
- Posner, Richard A, 1975. "The Social Costs of Monopoly and Regulation," Journal of Political Economy, University of Chicago Press, vol. 83(4), pages 807-827, August.
- Geroski, P A, 1990. "Innovation, Technological Opportunity, and Market Structure," Oxford Economic Papers, Oxford University Press, vol. 42(3), pages 586-602, July.
- Williamson, Oliver E, 1969. "Economies as an Antitrust Defense: Reply," American Economic Review, American Economic Association, vol. 59(5), pages 954-959, December.
- Littlechild, S C, 1981. "Misleading Calculations of the Social Costs of Monopoly Power," Economic Journal, Royal Economic Society, vol. 91(362), pages 348-363, June.
- Cowling, Keith & Mueller, Dennis C, 1978. "The Social Costs of Monopoly Power," Economic Journal, Royal Economic Society, vol. 88(352), pages 727-748, December.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwedp:201010. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.