Monopoly and the case for price control in poor countries
挑战了贫困国家价格控制缺乏经济理由的观点,论证在高度垄断的制造业中,适当的价格控制能促使垄断企业提高产量并降低成本,从而提升经济效率,并讨论了其在收入再分配中的作用。
This paper challenges the view that there is little economic, as opposed to political, justification for the prevalence of government price controls in poor countries. It is shown how appropriate price control measures in the highly monopolistic conditions characteristic of the manufacturing sector of poor countries can contribute towards improved economic efficiency in that sector by inducing monopolist manufacturers both to increase their level of production and to cut their production costs. The role of price control in income redistribution is also discussed.