The Social Costs of Monopoly and Regulation

  title={The Social Costs of Monopoly and Regulation},
  author={Richard A. Posner},
  journal={Journal of Political Economy},
  pages={807 - 827}
  • R. Posner
  • Published 1 September 1974
  • Economics
  • Journal of Political Economy
This paper presents a model and some highly tentative empirical estimates of the social costs of monopoly and monopoly-inducing regulation in the United States. Unlike the previous studies, it assumes that competition to obtain a monopoly results in the transformation of expected monopoly profits into social costs. A major conclusion is that public regulation is probably a larger source of social costs than private monopoly. The implications of the analysis for several public policy issues… 
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