Estimation of Social Cost of Monopoly in Insurance Industry:A Case Study of Iran
"Competition" and "monopoly" are two important issues in market structure analysis. Theoretically, monopoly structure in an industry results in distorted resource allocation, bringing about economic rents. The outcome of such market structure is the burden of social costs imposed...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2009-03-01
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| Series: | فصلنامه پژوهشهای اقتصادی ایران |
| Subjects: | |
| Online Access: | https://ijer.atu.ac.ir/article_3517_abdff57fb3c4603a7bb3e404f969260f.pdf |
| Summary: | "Competition" and "monopoly" are two important issues in market structure analysis. Theoretically, monopoly structure in an industry results in distorted resource allocation, bringing about economic rents. The outcome of such market structure is the burden of social costs imposed on the users. This study shows that the insurance industry in Iran is a tight monopoly. We therefore, estimate the resulting social burden of insurance industry in Iran. The result of calculating Harberger, Posner, and Cowling-Muller indices in 2003 shows that a social cost is equal to 2.8%, 3.45%, and 3.13%. of the revenues earned in insurance industry, respectively. |
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| ISSN: | 1726-0728 2476-6445 |