Document Type : Research Paper
Authors
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.
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