We extend an analytical general equilibrium model of environmental policy with pre-existing labor tax distortions to include pre-existing monopoly power as well. We show that the existence of monopoly power has two offsetting effects on welfare. First, the environmental policy reduces monopoly profits, and the negative effect on income increases labor supply in a way that partially offsets the ...

State - Owned Enterprises which were formed on the basis of mandate Article 33 1945 Constitution Republic Indonesia, in their journey carrying out activities various business fields obtain purchases to carry monopolies. This exception is further strengthened by 51 Law Number 5 1999 concerning Prohibition Monopolistic Practices and Unfair Business Competition . In general, there are natural mono...

This paper addresses the claim that monopolies arise naturally out of the free market. I show by comparing and contrasting two theories of monopoly—economic and political monopoly—that this is not true. This paper also demonstrates that the two theories of monopoly have their separate roots in two opposite theories of competition: perfect competition and competition as rivalry. I show that only...

a r t i c l e i n f o The objective of this paper is to analyze the efficiency consequences of monopoly from the perspective of an efficiency-wage model of unemployment based on Shapiro and Stiglitz (1984). An important feature of our model is that a firm can raise the probability that a shirking worker is detected by increasing its effort or investment in the monitoring of workers. Using this ...

This a conceptual paper concerning the relation between innovativeness and monopoly rent/abnormal earnings. It discusses how these concepts can be measured and proposes that abnormal earnings are the result differentiation, by innovativeness (monopoly rent) or branding, by underor overvalued assets, or by imperfect market information (value irrelevance). Specifically, innovativeness as a driver...

We study social welfare under monopoly using a version of the Kelton and Wallace (1995) two-good general-equilibrium monopoly production model. Individuals are heterogeneous with respect to preferences. They have identical production technologies and labor resources, but only a fraction of them share a monopoly license to produce one of the goods. Numerical evidence indicates that social welfar...

posed to accept Mr. Simons's interpretation of my wishes in regard to licensing reform. The licensed trade is already a monopoly?a private monopoly granted by the State. My contention is that the holders of that monopoly have failed to keep their part of the bargain, having to a very large extent confined the business to a trade in beer to the neglect of their obvious duty to the community, whi...