Computing welfare losses from data under imperfect competition with heterogeneous goods

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dc.contributor.author Corchón, Luis C.
dc.contributor.author Zudenkova, Galina
dc.contributor.editor Universidad Carlos III de Madrid. Departamento de Economía
dc.date.accessioned 2008-06-17T07:57:47Z
dc.date.accessioned 2009-01-28T10:55:04Z
dc.date.available 2009-01-28T10:55:04Z
dc.date.issued 2008-05
dc.identifier.issn 2340-5031
dc.identifier.uri http://hdl.handle.net/10016/2717
dc.description.abstract We study the percentage of welfare losses (PWL) yielded by imperfect competition under product differentiation. When demand is linear, if prices, outputs, costs and the number of firms can be observed, PWL is arbitrary in both Cournot and Bertrand equilibria. If in addition, the elasticity of demand (resp. cross elasticity of demand) is known, we can calculate PWL in Cournot (resp. Bertrand) equilibrium. When demand is isoelastic and there are many firms, PWL can be computed from prices, outputs, costs and the number of .rms. In all these cases we find that price-marginal cost margins and demand elasticities may influence PWL in a counterintuitive way. We also provide conditions under which PWL increases or decreases with concentration.
dc.format.mimetype text/plain
dc.format.mimetype application/octet-stream
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries UC3M Working papers. Economics;
dc.relation.ispartofseries 2008-16
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Welfare losses
dc.subject.other Product differentiation
dc.subject.other Cournot equilibrium
dc.subject.other Bertrand equilibrium
dc.title Computing welfare losses from data under imperfect competition with heterogeneous goods
dc.type workingPaper
dc.subject.jel D61
dc.subject.jel L11
dc.subject.jel L13
dc.subject.jel L50
dc.subject.eciencia Economía
dc.rights.accessRights openAccess
dc.identifier.repec we082616
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