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Welfare Improvement and the Extension of the Income Gap under Monopoly

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DOI: 10.4236/tel.2015.54069    2,968 Downloads   3,475 Views  


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.


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[4] Varian, H.R. (1992) Microeconomic Analysis. W. W. Norton and Company, New York.

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