MONOPOLY RENT AND MONOPOLY REVENUE AS A RESULT OF THE LACK OF A COMPETITIVE MECHANISM
Author(s): Rudnitsky Vladimir Stanislavovich
Release: 2020-2 (33)
Keywords: Monopoly rent, monopoly revenue, competition, monopoly, competitive risk, market share
Annotation: In the article, the author considers the features of income distribution in situations of monopolization of the market. In such markets, due to a violation of the competitive balance, one or several very large enterprises are able to control the size and quality of the supply, as well as the price, which leads to an uneven distribution of income. The author claims that the unearned income that made and appropriated by the monopolist should be considered as monopoly rent or monopoly revenue, depending on whether this income is the result of an unfair distribution or the result of pumping wealth beyond the added value created. The author is inclined to consider various kinds of competition restrictions as the source of such phenomena as monopoly rent and monopoly revenue. The greatest attention in the article is paid to the consideration of monopoly rents and its theoretical calculation. In the calculations, it is proposed to build on the indicators achievable in conditions of perfect competition.
Bibliography: Rudnitsky VL.ST. MONOPOLY RENT AND MONOPOLY REVENUE AS A RESULT OF THE LACK OF A COMPETITIVE MECHANISM // Economics and Management. – 2020. – № 2 (33). – С. 22-28. doi: 10.21777/2587-554X-2020-2-22-28