A neglected welfare cost of monopoly - and most other product market distortions

Article Abstract:

The welfare cost resulting from resource supply distortion, a monopoly's neglected consequence, tends to be more immense than their usually estimated welfare cost counterparts. Utilization of a general equilibrium model revealed that the size of welfare cost resulting from distortion in the quantity of resources supplied is five to fifteen times larger than the usual 'Harberger triangle' output mix distortion. Other economic policies create resource supply effects that tend to be more vital than their usual output market effect counterparts.

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Political structure, taxes, and trade

Article Abstract:

Non-cooperative tax policies imposed by independent jurisdictions in a chain of markets result to a decrease in trade volume, assuming that the different organizations set taxes at levels that maximizes their net revenues. A similar level of revenue and increased trade volume, however, could be achieved by monopolization of the chain of markets and sharing of revenues.

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Competing for capital in a 'lumpy' world

Article Abstract:

A model from economic geography is used to assess the impact of tax competition to attract capital investment.

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