Quarterly Journal of Quantitative Economics (JQE)

Competition and Its Impact on Social Welfare Increasing Evidence from Iranian Manufacturing Industries using Cowling-Mueller Technique

https://doi.org/10.22055/jqe.2013.11401
Volume 10, Issue 2 - Serial Number 2
Summer 2013
Pages 119-145
Quarterly Journal of Quantitative Economics (JQE)

Document Type : Research Paper

Authors

Mohammad Ali Feizpour
Mehdi Emami Meybodi
Abstract
Market structure and its impact on social welfare, is the subject as consequence of emergence of economics history. In practice, however, almost impossible to conceive of the conditions of perfect competition, however, can fulfill part of the requirements of this market, achieving near-perfect competition market structure expected. Accordingly, the main issue of this study was to evaluate the ability to increase social welfare by changing the structure of manufacturing industries in Iran.
Entropy is used for determining the market structure. To estimate the increase in social welfare by changing the market structure, Cooling- Muller technique has been used. The study of census data by the Statistical Centre of Iran's industrial workshops, programs in the early years of the second, third and fourth (1995, 2000 and 2005) have been extracted. The results showed an increase in social welfare in the manufacturing industries in 2005, according to Cooling- Muller technique is more than 35 thousand billion Rial increases. The results of this study and the realization of the conditions of perfect competition can sharply increase social welfare. This finding demonstrates the ability to increase the prosperity of not making new investments, but more the realization of perfect competition.

Keywords

Social Welfare
Non Competitive Structures
Cowling-Mueller Technique
Manufacturing Industry Iran
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  • Receive Date 17 November 2014
  • Revise Date 13 July 2015
  • Accept Date 01 July 2015
  • First Publish Date 01 July 2015
  • Publish Date 23 August 2013

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