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Monopoly Innovation and Welfare Effects

UNCP Author/Contributor (non-UNCP co-authors, if there are any, appear on document)
Dr.. Lydia Gan, Associate Professor (Creator)
Institution
The University of North Carolina at Pembroke (UNCP )
Web Site: http://www.uncp.edu/academics/library

Abstract: In this paper we study the welfare effect of a monopoly innovation. Unlike many partial equilibrium models carried out in previous studies, general equilibrium models are constructed and analyzed in greater detail. We discover that technical innovation carried out by a monopolist could significantly increase the social welfare. We conclude that, in general, the criticism against monopoly innovation based on its increased deadweight loss is less accurate than previously postulated by many studies.

Additional Information

Publication
Economics: The Open-Access, Open-Assessment E-Journal
Language: English
Date: 2010
Keywords
Monopoly, Social Welfare, Technical Innovation, General Equilibrium,