Income Distribution and Monopoly: Price and Quantity Patterns with Intra- and Inter-Class Income Dispersion

Posted: 30 Jun 2000

See all articles by Corrado Benassi

Corrado Benassi

University of Bologna

Roberto Cellini

University of Catania - Department of Economics and Business

Alessandra Chirco

Universita di Lecce - Facolta di Economia

Abstract

We analyze the direction of the co-movements of price and output in a monopolistic market when an expansive shock occurs. Price and quantity patterns are shown to depend on the consumers? income distribution. In particular, a low degree of income dispersion is associated with price and quantity reacting in opposite directions to demand shocks.

JEL Classification: D31, L12

Suggested Citation

Benassi, Corrado and Cellini, Roberto and Chirco, Alessandra, Income Distribution and Monopoly: Price and Quantity Patterns with Intra- and Inter-Class Income Dispersion. Available at SSRN: https://ssrn.com/abstract=231525

Corrado Benassi (Contact Author)

University of Bologna ( email )

Department of Economics
Piazza Scaravilli 2
40126 Bologna
Italy

Roberto Cellini

University of Catania - Department of Economics and Business ( email )

Corso Italia 55
95129 Catania, 95129
Italy
+390957537728 (Phone)
+390957537710 (Fax)

Alessandra Chirco

Universita di Lecce - Facolta di Economia ( email )

Ecotekne
Via per Monteroni
73100 Lecce
Italy

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