Revisited: Monopoly and Long-Run Capital Accumulation in Two-Sector Overlapping Generation Model

In this paper, we investigate if an increasing competition in an oligopolistic market will enhance the real incomes and consumer surplus in the long run. For this purpose, we apply a two-sector overlapping generation model in which members of the young generation own the oligopolistic firms. We show that increasing competition in the oligopolistic market leads to ambiguous outcomes regarding the real income and consumer surplus in the long run. However, we show that the distribution of income will become fairer if the competition increases, but it is possible that the price for a fairer distribution is a lower income for all members of the economy.

• Publication year

  2021

• Venue

  Journal of Risk and Financial Management

• Publication date

  2021-07-03

• Fields of study

  Economics

• Identifiers
  DOI 10.3390/JRFM14070304
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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