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Distributive and Regional Effects of Monopoly Power

Author

Listed:
  • Carlos M. Urzúa

    (Director of EGAP Gobierno y Política Pública, Tecnológico de Monterrey, Mexico City campus.)

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 larger, in relative terms, for the poor. 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

  • Carlos M. Urzúa, 2013. "Distributive and Regional Effects of Monopoly Power," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 279-295, July-Dece.
    • Handle: RePEc:emc:ecomex:v:22:y:2013:i:2:p:279-295
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    File URL: http://www.economiamexicana.cide.edu/num_anteriores/XXII-2/02-EM_Carlos_M_Urzua.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, September.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Rodriguez Castelan,Carlos, 2015. "The poverty effects of market concentration," Policy Research Working Paper Series 7515, The World Bank.
    2. Rodríguez del Valle, Adrián & Fernández-Vázquez, Esteban, 2024. "Analyzing market power of the agricultural industry in Asia," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 652-669.
    3. 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).
    4. Tania Begazo & Sara Nyman, 2016. "Competition and Poverty," World Bank Publications - Reports 24251, The World Bank Group.

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    More about this item

    Keywords

    monopoly; market power; income distribution; social welfare; Mexico.;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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