Second Best Antitrust in General Equilibrium - A Special Case

Claus Thustrup Hansen
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Claus Thustrup Hansen: University of Copenhagen Institute of Economics
Authors registered in the RePEc Author Service: Claus Thustrup Kreiner

No 97-19, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: 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.

Keywords: monopoly; general equilibrium, regulation (search for similar items in EconPapers)
JEL-codes: D42 L41 (search for similar items in EconPapers)
Pages: 22 pages
Date: 1997-12
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Published in: Economics Letters 63(2) 1999, 193-199

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http://dx.doi.org/10.1016/S0165-1765(99)00042-7

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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:9719

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