Revisited: Monopoly and Long-Run Capital Accumulation in Two-Sector Overlapping Generation Model

Ronald Kumar and Peter Stauvermann

JRFM, 2021, vol. 14, issue 7, 1-19

Abstract: In this paper, we investigate if an increasing competition in an oligopolistic market will enhance the real incomes and consumer surplus in the long run. For this purpose, we apply a two-sector overlapping generation model in which members of the young generation own the oligopolistic firms. We show that increasing competition in the oligopolistic market leads to ambiguous outcomes regarding the real income and consumer surplus in the long run. However, we show that the distribution of income will become fairer if the competition increases, but it is possible that the price for a fairer distribution is a lower income for all members of the economy.

Keywords: oligopolistic competition; two-sector overlapping generations; consumer surplus; real income (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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