HOW SERIOUS IS THE PROBLEM OF MONOPOLY?
Abstract
This paper provides a survey of literature for the welfare losses due to
monopoly. Since 1954 economists have been trying to measure the social
costs of monopolies by using different estimation techniques. The measure
most frequently used to calculate the welfare losses has been consumer
surplus. In 1950s and 1960s monopoly was not thought to be a big problem.
The estimations showed that it only generated a loss equal to 1% of GNP.
However, in 1970s and 1980s this thought has changed, and it has been
accepted that monopolies are a real bad.
Keywords
References
- Bergson-1973] A. Bergson. "On Monopoly Welfare Losses". The American Economic Review, 63: 853-870, December 1973.
- Bumpass-1976] D. L . Bumpass. "Welfare Loss Due to Monopoly". Journal of Economics, 11: 90-93, 1976.
- Carson-1975] R. Carson. "On Monopoly Welfare Losses: Comment". The American Economic Review, 65: 1008-1014, December 1975.
- Cowling-1978] K. Cowling and D. Mueller. "The Social Costs of Moı nopoly Power". The Economic Journal, 88: 727-748, December 1978.
- Fisher-1985] F. M. Fisher. "The Social Costs of Monopoly and regulation: Posner reconsidered". Journal of Political Economy, 93(21): 410-416, 1985.
- Harberger-1954] A. C. Harberger. "Monopoly and Resource Allocaı tion". The American Economic Review, 45: 77-87, May 1954.
- Kamerschen-1966] D. R. Kamerschen. "An Estimation of the Welfare losses from Monopoly in the American Economy". Western Economic Journal, 4: 221-236, Summer 1966.
- Littlechild-1981] S. C. Littlechild. "Misleading Calculations of the Social Cost of Monopoly Power". The Economic Journal, 91: 348-363, June 1981.
Details
Primary Language
English
Subjects
Business Administration
Journal Section
Research Article
Publication Date
July 12, 2012
Submission Date
July 12, 2012
Acceptance Date
-
Published in Issue
Year 2012 Volume: 62 Number: 1