RT Generic
T1 On the General Equilibrium Effects of Market Power
A1 Moreno, Diego
A1 Petrakis, Emmanuel
A2 Universidad Carlos III de Madrid. Departamento de Estadística, 
AB In an economy in which firms exercise market power in the markets for consumption goods and inputs (labor), we show that a merger to monopoly is Pareto improving when the number of firms is below a threshold. This threshold is larger the larger is the elasticity of labor supply and the smaller is the consumers'preference for goods variety. Consequently, market concentration may have non-monotonic general equilibrium effects on wage mark downs, employment and welfare.
SN 2340-5031
YR 2022
FD 2022-07-22
LK https://hdl.handle.net/10016/35529
UL https://hdl.handle.net/10016/35529
LA eng
NO Moreno acknowledges financial support of the MCI (Spain), grant PGC2018-098510-B-I00, and from the Comunidad de Madrid, grant H2019/HUM-5891. Petrakis acknowledges financial support from UC3M-Santander chairs of Excellence.
DS e-Archivo
RD 27 jul. 2024