Abstract

http://ssrn.com/abstract=1726766
 


 



Monopoly Innovation and Welfare Effects


Shuntian Yao


Nanyang Technological University (NTU) - Centre for Research in Financial Services (CREFS)

Lydia L. Gan


University of North Carolina at Pembroke; Medical Tourism Research Center

2010

Economics Discussion Paper No. 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.

Number of Pages in PDF File: 30

Keywords: Monopoly, social welfare, technical innovation, general equilibrium

JEL Classification: D50, D60

working papers series





Download This Paper

Date posted: December 18, 2010  

Suggested Citation

Yao, Shuntian and Gan , Lydia L., Monopoly Innovation and Welfare Effects (2010). Economics Discussion Paper No. 2010-10. Available at SSRN: http://ssrn.com/abstract=1726766 or http://dx.doi.org/10.2139/ssrn.1726766

Contact Information

Shuntian Yao (Contact Author)
Nanyang Technological University (NTU) - Centre for Research in Financial Services (CREFS) ( email )
Nanyang Avenue
Division of Applied Economics
Singapore 639798
Singapore
Lydia L. Gan
University of North Carolina at Pembroke ( email )
P.O. Box 1510
Pembroke, NC 28372-1510
United States
9107754265 (Phone)
9105216750 (Fax)
HOME PAGE: http://www.uncp.edu/business/
Medical Tourism Research Center ( email )
P O Box 1510
One University Drive
Pembroke, NC 28372
United States
910-521-6592 (Phone)
910-521-6750 (Fax)
HOME PAGE: http://www.uncp.edu/mtrc/
Feedback to SSRN


Paper statistics
Abstract Views: 369
Downloads: 59
Download Rank: 61,403

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 0.391 seconds