Publication Type
Working Paper
Version
publishedVersion
Publication Date
3-2003
Abstract
Since Schumpeter, a major concern has been: what monopoly does to growth? Monopoly’s static, allocative inefficiency is well established. How much this is offset by its dynamic progressiveness is unclear. First, using the empirical literature, we argue that the presumed progressiveness of monopoly must be rejected. Second, we extend the endogenous growth model to obtain a full Pareto ranking of competition, monopoly, Cournot and Bertrand. Competition beats Cournot, which in turn beats monopoly. Growth rate is invariant with structures, which accords well with empirical evidence. Bertrand happens to share the ranking with competition. The findings have a strong anti-trust overtone.
Keywords
Growth, Market Structure, Schumpeterian hypothesis, R&D, Externalities
Discipline
Finance | Growth and Development
Research Areas
Macroeconomics
Volume
07-2003
First Page
1
Last Page
21
Publisher
SMU Economics and Statistics Working Paper Series, No. 07-2003
City or Country
Singapore
Citation
LEUNG, Hing-Man.
Market Structure and Performance: An Anti-Trust Story of Endogenous Growth. (2003). 07-2003, 1-21.
Available at: https://ink.library.smu.edu.sg/soe_research/683
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.