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Title:Monopoly innovation and welfare effects PDF Logo
Authors:Yao, Shuntian
Gan, Lydia
Issue Date:2010
Series/Report no.:Economics Discussion Papers 2010-10
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 with non-price-taking behavior 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.
Subjects:Monopoly
social welfare
technical innovation
general equilibrium
JEL:D50
D60
Creative Commons License:http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type:Working Paper
Appears in Collections:Economics: The Open-Access, Open-Assessment E-Journal - Discussion Papers

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