Personal Income Distribution and Market Structure
Income distribution affects market demand and its elasticity, and, as a consequence, the optimal behaviour of firms and market equilibrium. This paper focuses on the effects of income polarization, and presents a model where - for any unimodal density function describing income distribution of the consumers - income polarization leads to market concentration, i.e., to a smaller number of firms able to survive in the long run, provided that the firms' fixed costs are sufficiently low. Copyright Verein fü Socialpolitik and Blackwell Publishers Ltd 2002.
Year of publication: |
2002
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Authors: | Benassi, Corrado ; Cellini, Roberto ; Chirco, Alessandra |
Published in: |
German Economic Review. - Verein für Socialpolitik - VfS. - Vol. 3.2002, 3, p. 327-338
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Publisher: |
Verein für Socialpolitik - VfS |
Saved in:
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