Market power and welfare loss

Merino Troncoso, Carlos (2019): Market power and welfare loss.

Abstract

I estimate welfare loss of market power using consumer loss variation. I estimate demand elasticity of certain goods known to suffer monopolistic power. Based in Urzúa's study I employ data from household expenditure survey of Spain and Deaton ́s methodology to estimate elasticities of demand using expenditure of households. We finally obtain distributive effects of market power in selected sectors.

• Item Type: MPRA Paper
• Language: English
• Keywords: welfare loss, inequality, demand elasticity
• Subjects: D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement; L - Industrial Organization > L4 - Antitrust Issues and Policies

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