Cost structures, innovation and welfare in monopoly

Q2 Social Sciences

European Competition Journal Pub Date : 2022-02-28 DOI:10.1080/17441056.2022.2034330

Suryaprakash Mishra

引用次数: 0

Abstract

ABSTRACT This paper, concerning cost structures and innovation in monopoly and the resulting welfare, has counter-intuitive results. We consider linear demand and two cases of cost structures namely constant marginal cost (henceforth CMC) and increasing marginal cost (henceforth IMC) in monopoly, and show that innovation is rewarding in both situations. From the regulator’s perspective, in absence of any innovation or in case of equal innovation in both cases, a monopolist with an IMC may be preferred as against the one with a CMC.

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垄断中的成本结构、创新与福利

这篇关于成本结构和垄断创新以及由此产生的福利的论文得出了反直觉的结果。我们考虑了线性需求和两种成本结构的情况，即垄断下的边际成本不变(CMC)和边际成本增加(IMC)，并表明在这两种情况下创新都是有益的。从监管机构的角度来看，在没有任何创新的情况下，或者在两种情况下都有相同的创新的情况下，拥有IMC的垄断者可能比拥有CMC的垄断者更受青睐。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

European Competition Journal Social Sciences-Law

CiteScore

1.50

自引率

0.00%

发文量

期刊介绍： The European Competition Journal publishes outstanding scholarly articles relating to European competition law and economics. Its mission is to help foster learning and debate about how European competition law and policy can continue to develop in an economically rational way. Articles published in the Journal are subject to rigorous peer review by leading experts from around Europe. Topics include: -Vertical and Conglomerate Mergers -Enlargement of the Union - the ramifications for Competition Policy -Unilateral and Coordinated Effects in Merger Control -Modernisation of European Competition law -Cartels and Leniency.