Concentration, Barrier to Entry and Economies of Scale in the Water Airconditioner Industry in Iran and Evaluation of Social Welfare Cost

Document Type : Research Paper

Authors

Abstract
In this paper has been used concentration index, cost disadvantage ratio(CDR(, minimum efficient scale (MES) and social cost indices in order to evaluate the water cooler market structure and performance. The survey results indicate that there are low degree of competition between firms in this industry and barriers to entry is high. Also, most firms have not benefited from economies of scale. Harberger and Posner indice show that welfar cost of monopoly in this industry is high.
  • Receive Date 23 June 2014
  • First Publish Date 23 June 2014
  • Publish Date 21 March 2011