TY - JOUR
T1 - The social cost of rent seeking when consumer opposition influences monopoly behavior
AU - Epstein, Gil S.
AU - Nitzan, Shmuel
PY - 2003/3
Y1 - 2003/3
N2 - In this paper, we show how consumer opposition to monopoly rents affects choice of monopolistic price, and thereby determines the social cost of rent seeking. Our model differs from pervious analyses, which have been based on the assumption that the monopolist always chooses the profit-maximizing monopoly price, which is not, however, a rational behavior for a monopolist confronting consumer opposition.
AB - In this paper, we show how consumer opposition to monopoly rents affects choice of monopolistic price, and thereby determines the social cost of rent seeking. Our model differs from pervious analyses, which have been based on the assumption that the monopolist always chooses the profit-maximizing monopoly price, which is not, however, a rational behavior for a monopolist confronting consumer opposition.
KW - Endogeneous monopoly price
KW - Rent avoidance
KW - Rent seeking
KW - Social cost
UR - http://www.scopus.com/inward/record.url?scp=0037332629&partnerID=8YFLogxK
U2 - 10.1016/s0176-2680(02)00129-5
DO - 10.1016/s0176-2680(02)00129-5
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AN - SCOPUS:0037332629
SN - 0176-2680
VL - 19
SP - 61
EP - 69
JO - European Journal of Political Economy
JF - European Journal of Political Economy
IS - 1
ER -