Revisited: monopoly and long - run capital accumulation in two - sector overlapping generation model

Kumar, Ronald R. and Stauvermann, P.J. (2021) Revisited: monopoly and long - run capital accumulation in two - sector overlapping generation model. Journal of Risk and Financial Management, 14 (7). pp. 1-19. ISSN 1911-8066

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Abstract

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.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory
Divisions:	School of Accounting, Finance and Economics (SAFE)
Depositing User:	Ronald Kumar
Date Deposited:	09 Aug 2021 00:39
Last Modified:	01 Feb 2022 21:55
URI:	https://repository.usp.ac.fj/id/eprint/12870

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