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The Social Costs of Monopoly: A Survey And An Evaluation

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  • Gumus, Erdal

Abstract

Existence of monopoly and its costs to societies have been intensely studied. However, there has been no clear view obtained yet. Studies of rentseeking approach of the public choice school even make the issue more interesting. This paper surveys from traditional Harberger’s triangle approach of social costs of monopoly to the most recent studies and drive some conclusions from it.

Suggested Citation

  • Gumus, Erdal, 2006. "The Social Costs of Monopoly: A Survey And An Evaluation," MPRA Paper 42107, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42107
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    References listed on IDEAS

    as
    1. Klaus Stegemann, 1984. "The Social Costs of Monopoly in an Open Economy," Canadian Journal of Economics, Canadian Economics Association, vol. 17(4), pages 718-730, November.
    2. Young, David P. T., 1997. "Dominant firms, price leadership and the measurement of monopoly welfare losses," International Journal of Industrial Organization, Elsevier, vol. 15(5), pages 533-533, August.
    3. Keem, Jung Hoon, 2001. "The social cost of monopoly when consumers resist," European Journal of Political Economy, Elsevier, vol. 17(3), pages 633-639, September.
    4. Browning, Edgar K., 1997. "A neglected welfare cost of monopoly--and most other product market distortions," Journal of Public Economics, Elsevier, vol. 66(1), pages 127-144, October.
    5. Richard A. Posner, 1975. "The Social Costs of Monopoly and Regulation," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 45-65, Springer.
    6. Bergson, Abram, 1973. "On Monopoly Welfare Losses," American Economic Review, American Economic Association, vol. 63(5), pages 853-870, December.
    7. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521266550, January.
    8. Cowling, Keith & Mueller, Dennis C, 1978. "The Social Costs of Monopoly Power," Economic Journal, Royal Economic Society, vol. 88(352), pages 727-748, December.
    9. Ralph C. Epstein & Florence M. Clark, 1934. "Industrial Profits in the United States," NBER Books, National Bureau of Economic Research, Inc, number epst34-1, June.
    10. Siegfried, John J & Tiemann, Thomas K, 1974. "The Welfare Cost of Monopoly: An Inter-Industry Analysis," Economic Inquiry, Western Economic Association International, vol. 12(2), pages 190-202, June.
    11. Wenders, John T, 1987. "On Perfect Rent Dissipation," American Economic Review, American Economic Association, vol. 77(3), pages 456-459, June.
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    More about this item

    Keywords

    Social costs of monopoly; Harberger’s triangle; Rent-seeking theory;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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