This paper explains how grants of monopolistic privileges to capitalists can lower labor and land factors’ prices compared to what would prevail in a free market environment. Monopoly gains of privileged business owners are not only “extracted” from their clients but also from factor owners. We revisit Rothbardian monopoly price theory and extend it to the realm of factor pricing. Monopolistic ...

0. Summary of Argument The root cause for the persistent lack of progress toward competition in New Zealand telecommunications can be found in Telecom's origins: privatization and deregulation created a de facto monopoly; Telecom's monopoly is sustainable against competition despite the disappearance of natural monopoly conditions throughout telecommunications markets; Grants of monopoly are ec...

We study allocative inefficiency under monopoly using a two-good general-equilibrium monopoly production model. Individuals are heterogeneous with respect to preferences. We compare social welfare under monopoly with welfare under perfect competition. We then apply this model to the antidepressant and antipsychotic pharmaceutical markets. We find that, for nine specific drugs, annual social-wel...

We study the regulation of a monopolistic firm using robust-design approach. solve for policy that minimizes regulator's worst-case regret, where regret is difference between his complete-information payoff minus realized payoff. When consumers' surplus, it optimal to impose price cap. The cap balances benefit from more surplus consumers and loss underproduction. plus firm's profit, he offers p...

The administrative monopoly breaks the principle of justice, and has large harm to the society. The special chapter in Chinese Antimonopoly Law regulates the contents and corresponding legal responsibilities of administrative monopoly, but the law still has some deficiencies. The Chinese Antimonopoly Law should be perfected from increasing the operation property, confirming the comprehensive le...

This paper tries to bring together the basic explanation of monopolies and Schumpeterian hypothesis of type and size of firm stimulating innovation by taking into account some literature that relates these two. It is a brief literature synthesis and sets grounds for future empirical research to test the Schumpeterian hypotheses.

Recent papers have argued that a monopoly firm might be able to maximize its profit by allowing some customers to steal its product. In particular, with network externalities, it is claimed that allowing piracy can be profitable because it increases the user base of the product and raises the willingness-to-pay of other customers. In this paper we analyze these claims when the producer can free...