Share This Article:

Welfare Improvement and the Extension of the Income Gap under Monopoly

Abstract Full-Text HTML XML Download Download as PDF (Size:306KB) PP. 590-597
DOI: 10.4236/tel.2015.54069    2,968 Downloads   3,475 Views  

ABSTRACT

This study constructs a model of a monopoly where investors are also actors, and shows that, in contrast to traditional models, this model admits the welfare improvement caused by monopoly. This study also reveals that if a huge income gap exists in the initial stage, then monopoly exacerbates the expansion of the income gap caused by market trades. Moreover, we show that this exacerbation occurs in general situations under some additional (but natural) assumptions.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Hosoya, Y. and Kaneko, S. (2015) Welfare Improvement and the Extension of the Income Gap under Monopoly. Theoretical Economics Letters, 5, 590-597. doi: 10.4236/tel.2015.54069.

References

[1] Hicks, J.R. (1938) Value and Capital. Oxford University Press, Oxford.
[2] Mas-Colell, A., Whinston, M.D. and Green, J.R. (1995) Microeconomic Theory. Oxford University Press, Oxford.
[3] Okuno, M. (2008) Microeconomics. Tokyo University Press, Tokyo.
[4] Varian, H.R. (1992) Microeconomic Analysis. W. W. Norton and Company, New York.

  
comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.