The effects of imperfect competition and antitrust measures in a three-sector OLG model

Peter J. Stauvermann (), Jin Hu () and Ronald R. Kumar ()
Additional contact information
Peter J. Stauvermann: Changwon National University
Jin Hu: Jiaxing University
Ronald R. Kumar: RMIT University

Journal of Economics, 2025, vol. 146, issue 2, No 2, 145-186

Abstract: Abstract In this paper, we examine the outcome of different market structures using a three-sector overlapping generations model for an economy consisting of competitive final good, a competitive intermediate good and an oligopolistic intermediate goods sector. Given an oligopolistic sector, we analyze if an increase of the numbers of competitors will cause an increase of welfare in the steady-state equilibrium. Our analyses show that greater competition will not necessarily lead to an increase of real income and welfare in the long run. Moreover, more competition affects the allocation of input factors and redistributes income from the young to the old generation.

Keywords: Monopoly; Cournot competition; Oligopoly; Three-sector growth model; Income inequality; Profit taxation (search for similar items in EconPapers)
JEL-codes: L13 O41 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s00712-025-00912-2 Abstract (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jeczfn:v:146:y:2025:i:2:d:10.1007_s00712-025-00912-2

DOI: 10.1007/s00712-025-00912-2

Access Statistics for this article

Journal of Economics is currently edited by Giacomo Corneo

More articles in Journal of Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().