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.
Monopoly Innovation and Welfare Effects
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Created on 2/8/2010
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Additional Information
- Publication
- Economics: The Open-Access, Open-Assessment E-Journal
- Language: English
- Date: 2010
- Keywords
- Monopoly, Social Welfare, Technical Innovation, General Equilibrium,