Markets, Monopolies and Moguls: The Relationship between Inequality and Competition

24 Pages Posted: 2 Dec 2016

See all articles by Andrew Leigh

Andrew Leigh

Australian House of Representatives Parliament House; Centre for Applied Macroeconomic Analysis, ANU; IZA

Adam Triggs

Australian National University (ANU) - Crawford School of Public Policy

Date Written: December 2016

Abstract

Analysing private market research data, we estimate the degree of market concentration across 481 industries in the Australian economy. On average, the largest four firms control 36 per cent of the market. Some industries are considerably more concentrated. In department stores, newspapers, banking, health insurance, supermarkets, domestic airlines, Internet service providers, baby food and beer, the biggest four firms control more than 80 per cent of the market. We suggest ways in which high market concentration may increase inequality and discuss some policy ideas to address the problem.

Suggested Citation

Leigh, Andrew and Triggs, Adam, Markets, Monopolies and Moguls: The Relationship between Inequality and Competition (December 2016). Australian Economic Review, Vol. 49, Issue 4, pp. 389-412, 2016, Available at SSRN: https://ssrn.com/abstract=2879153 or http://dx.doi.org/10.1111/1467-8462.12185

Andrew Leigh (Contact Author)

Australian House of Representatives Parliament House ( email )

Canberra, 2600
Australia

Centre for Applied Macroeconomic Analysis, ANU ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

IZA ( email )

Adam Triggs

Australian National University (ANU) - Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

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