Monopoly as a source of market failure
Topic:Monopoly as a source of market failureDiscipline:Environmental & Natural Resource Economics
Almaty, 2013
Contents:
1. TOC \o "1-3" \h \z \u Abtsract. PAGEREF _Toc373180946 \h 32. Introduction: The rise of a steel giant. PAGEREF _Toc373180947 \h 43. The Theory of Natural Monopoly. PAGEREF _Toc373180948 \h 53.1. A natural monopoly. PAGEREF _Toc373180949 \h 53.2. The costs of monopoly: PAGEREF _Toc373180950 \h 73.3. The benefits of monopoly: PAGEREF _Toc373180951 \h 83.4. Remedies for monopoly: PAGEREF _Toc373180952 \h 93.5. Do Monopolies Undermine The Environment? PAGEREF _Toc373180953 \h 104. ArcelorMittal: Going nowhere slowly. PAGEREF _Toc373180954 \h 124.1. Background. PAGEREF _Toc373180955 \h 124.1.1. ArcelorMittal Temirtau Kazakhstan PAGEREF _Toc373180956 \h 124.2. Overview. PAGEREF _Toc373180957 \h 144.2.1. Pollution. PAGEREF _Toc373180958 \h 144.2.2. Mittal’s social investments. PAGEREF _Toc373180959 \h 164.3.3. Perverse subsidies for ArcelorMittal Temirtau. PAGEREF _Toc373180960 \h 174.3.4. Lack of access to information. PAGEREF _Toc373180961 \h 175. Recommendations to ArcelorMittal’s management and shareholders. PAGEREF _Toc373180962 \h 195.1. To ArcelorMittal’s management and shareholders: PAGEREF _Toc373180963 \h 195.2. To local and national authorities in locations where Arcelor-Mittal is operating: PAGEREF _Toc373180964 \h 195.3. To the EBRD and IFC: PAGEREF _Toc373180965 \h 196. References/bibliography. PAGEREF _Toc373180966 \h 20
Abtsract.Environmental problems also occur when one of the participants in an exchange of property rights is able to exercise an inordinate amount of power over the outcome. This can occur, for example, when a product is sold by a single seller, or monopoly.
A firm that has no competitors in its industry is called a monopoly. Monopolies are not all evil. Neither are they utterly good. Monopolies are much maligned because their profit incentive leads them to raise prices and lower output in order to
Almaty, 2013
Contents:
1. TOC \o "1-3" \h \z \u Abtsract. PAGEREF _Toc373180946 \h 32. Introduction: The rise of a steel giant. PAGEREF _Toc373180947 \h 43. The Theory of Natural Monopoly. PAGEREF _Toc373180948 \h 53.1. A natural monopoly. PAGEREF _Toc373180949 \h 53.2. The costs of monopoly: PAGEREF _Toc373180950 \h 73.3. The benefits of monopoly: PAGEREF _Toc373180951 \h 83.4. Remedies for monopoly: PAGEREF _Toc373180952 \h 93.5. Do Monopolies Undermine The Environment? PAGEREF _Toc373180953 \h 104. ArcelorMittal: Going nowhere slowly. PAGEREF _Toc373180954 \h 124.1. Background. PAGEREF _Toc373180955 \h 124.1.1. ArcelorMittal Temirtau Kazakhstan PAGEREF _Toc373180956 \h 124.2. Overview. PAGEREF _Toc373180957 \h 144.2.1. Pollution. PAGEREF _Toc373180958 \h 144.2.2. Mittal’s social investments. PAGEREF _Toc373180959 \h 164.3.3. Perverse subsidies for ArcelorMittal Temirtau. PAGEREF _Toc373180960 \h 174.3.4. Lack of access to information. PAGEREF _Toc373180961 \h 175. Recommendations to ArcelorMittal’s management and shareholders. PAGEREF _Toc373180962 \h 195.1. To ArcelorMittal’s management and shareholders: PAGEREF _Toc373180963 \h 195.2. To local and national authorities in locations where Arcelor-Mittal is operating: PAGEREF _Toc373180964 \h 195.3. To the EBRD and IFC: PAGEREF _Toc373180965 \h 196. References/bibliography. PAGEREF _Toc373180966 \h 20
Abtsract.Environmental problems also occur when one of the participants in an exchange of property rights is able to exercise an inordinate amount of power over the outcome. This can occur, for example, when a product is sold by a single seller, or monopoly.
A firm that has no competitors in its industry is called a monopoly. Monopolies are not all evil. Neither are they utterly good. Monopolies are much maligned because their profit incentive leads them to raise prices and lower output in order to
References: bibliography: 1. Samuelson, W & Marks, S: 100. Managerial Economics 4th ed. Wiley 2003.2. Monopoly: A Brief Introduction by The Linux Information Project. URL: http://www.linfo.org/monopoly.html3. Monopoly by Elmer G. Wiens: Online Interactive Models of Monopoly (Public or Private) and Oligopoly. URL: http://www.egwald.ca/economics/econpage.php34. Monopoly Profit and Loss by Fiona Maclachlan. URL: http://demonstrations.wolfram.com/MonopolyProfitAndLoss5. Monopoly and Natural Monopoly by Seth J. Chandler, Wolfram Demonstrations Project.