Undesirable competition

Leonard F.S. Wang and Arijit Mukherjee

Economics Letters, 2012, vol. 114, issue 2, 175-177

Abstract: We show that the entry of private profit-maximising firms makes the consumers worse off compared to having a nationalised monopoly. Such entry increases the nationalised firm’s profit, industry profit, and social welfare, at the expense of the consumers. Our result is important for competition policy.

Keywords: Competition; Consumer surplus; Nationalised firm (search for similar items in EconPapers)
JEL-codes: D43 H00 L11 L13 L32 L44 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Undesirable Competition (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:2:p:175-177

DOI: 10.1016/j.econlet.2011.09.021

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