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- Title
Monopoly Rights: A Barrier to Riches.
- Authors
Parente, Stephen L.; Prescott, Edward C.
- Abstract
Our thesis is that poor countries are poor because they employ arrangements for which the equilibrium outcomes are characterized by inferior technologies being used, and being used inefficiently. In this paper, we analyze the consequences of one such arrangement. In each industry, the arrangement enables a coalition of factor suppliers to be the monopoly seller of its input services to all firms using a particular production process. We find that eliminating this monopoly arrangement could well increase output by roughly a factor of 3 without any increase in inputs.
- Subjects
INDUSTRIES; COALITIONS; PRODUCTION (Economic theory); SUPPLY &; demand; MICROECONOMICS
- Publication
American Economic Review, 1999, Vol 89, Issue 5, p1216
- ISSN
0002-8282
- Publication type
Article
- DOI
10.1257/aer.89.5.1216