search query: @indexterm WELFARE LOSS / total: 19
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| Author: | Aiginer, K. Pfaffermayr, M. |
| Title: | Looking at the cost side of "monopoly" |
| Journal: | Journal of Industrial Economics
1997 : SEP, Vol. 45:3, p. 245-267 |
| Index terms: | MONOPOLY WELFARE LOSS INDUSTRIES |
| Language: | eng |
| Abstract: | Welfare loss under oligopoly is defined as that part of consumer surplus which is lost and not regained by higher profits. In a model with asymmetric firms, this implies that the total welfare loss consits of the deadweight loss triangle plus a cost side inefficiency effect, due to the fact that in imperfect markets not all firms utilize the lowest cost technique. Using a flexible CV-model we calculate these effects empirically for two relatively homogenous industries (pulp/paper and cement). The deadweight loss triangles are shown to be smaller than the cost difference effect ("the staircase") for these industries. |
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