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 |
| _version_ | 1797369397095956480 |
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| author | Mohammadnabi Shahekitash Nasim Fiyozi Ekhtiyari |
| author_facet | Mohammadnabi Shahekitash Nasim Fiyozi Ekhtiyari |
| author_sort | Mohammadnabi Shahekitash |
| collection | DOAJ |
| description | "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. |
| first_indexed | 2024-03-08T17:46:08Z |
| format | Article |
| id | doaj.art-96b2094c962747f8b0614a70ada91209 |
| institution | Directory Open Access Journal |
| issn | 1726-0728 2476-6445 |
| language | fas |
| last_indexed | 2024-03-08T17:46:08Z |
| publishDate | 2009-03-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | فصلنامه پژوهشهای اقتصادی ایران |
| spelling | doaj.art-96b2094c962747f8b0614a70ada912092024-01-02T10:28:29ZfasAllameh Tabataba'i University Pressفصلنامه پژوهشهای اقتصادی ایران1726-07282476-64452009-03-0113381331553517Estimation of Social Cost of Monopoly in Insurance Industry:A Case Study of IranMohammadnabi Shahekitash0Nasim Fiyozi Ekhtiyari1Faculty member of the Faculty of Economics, Sistan and Baluchestan UniversityM.A in Economics"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.https://ijer.atu.ac.ir/article_3517_abdff57fb3c4603a7bb3e404f969260f.pdfinsurance marketeffective monopolyconcentrationharbergerposnercowling-muller |
| spellingShingle | Mohammadnabi Shahekitash Nasim Fiyozi Ekhtiyari Estimation of Social Cost of Monopoly in Insurance Industry:A Case Study of Iran فصلنامه پژوهشهای اقتصادی ایران insurance market effective monopoly concentration harberger posner cowling-muller |
| title | Estimation of Social Cost of Monopoly
in Insurance Industry:A Case Study of Iran |
| title_full | Estimation of Social Cost of Monopoly
in Insurance Industry:A Case Study of Iran |
| title_fullStr | Estimation of Social Cost of Monopoly
in Insurance Industry:A Case Study of Iran |
| title_full_unstemmed | Estimation of Social Cost of Monopoly
in Insurance Industry:A Case Study of Iran |
| title_short | Estimation of Social Cost of Monopoly
in Insurance Industry:A Case Study of Iran |
| title_sort | estimation of social cost of monopoly in insurance industry a case study of iran |
| topic | insurance market effective monopoly concentration harberger posner cowling-muller |
| url | https://ijer.atu.ac.ir/article_3517_abdff57fb3c4603a7bb3e404f969260f.pdf |
| work_keys_str_mv | AT mohammadnabishahekitash estimationofsocialcostofmonopolyininsuranceindustryacasestudyofiran AT nasimfiyoziekhtiyari estimationofsocialcostofmonopolyininsuranceindustryacasestudyofiran |