Second Best Antitrust in General Equilibrium - A Special Case.

This paper analyzes the welfare implications of regulating some but not all monopolistic industries of an economy (i.e., marginal regulation). It is shown that marginal regulation decreases welfare if a large fraction of all industries are monopolistic. Furthermore, the paper shows that the difference between the true welfare loss and the standard dead-weight loss grows progressively as the monopolistic part of the economy grows.

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Year of publication:	1997-12
Authors:	Hansen, Claus Thustrup
Institutions:	Økonomisk Institut, Københavns Universitet
Subject:	monopoly \| general equilibrium \| regulation

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Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Published in: Economics Letters 63(2) 1999, 193-199 Number 97-19 22 pages
Other identifiers:	10.1016/S0165-1765(99)00042-7 [DOI]
Classification:	D42 - Monopoly ; L41 - Monopolization; Horizontal Anticompetitive Practices
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005233019