Theoretical and Empirical Study of the Effects of Deregulation on Income in Monopoly Industries
Hejun Fan
Abstract
Hejun Fan
Abstract
High income of monopoly industries have raised widespread concern in recent years.Deregulation is the important direction of monopoly industries reform.This paper build a principal-agent model to analyze the effects of deregulation on income distribution and verify this conclusion by the OECD data.This study finds that deregulation will decrease the income of monopoly industries.
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High income of monopoly industries have raised widespread concern in recent years.Deregulation is the important direction of monopoly industries reform.This paper build a principal-agent model to analyze the effects of deregulation on income distribution and verify this conclusion by the OECD data.This study finds that deregulation will decrease the income of monopoly industries.
Key concepts: Monopoly, Deregulation, Economics, Distribution (mathematics), Income distribution, Labour economics, Market economy, Industrial organization