Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/30021 
Year of Publication: 
2010
Series/Report no.: 
Economics Discussion Papers No. 2010-10
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
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: 
cc-by-nc Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
274.59 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.