Volume 31, Issue 1 (Spring 2026)
EPRJ 2026, 31(1): 165-204 |
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rasekhjahromi E, ebrahimi M, zare H. (2026). An Applied Examination of the Comanor-Leibenstein Approach in Measuring the Social Costs of Monopoly: A Case Study of Selected Industries in Iran. EPRJ. 31(1), 165-204.
URL: http://eprj.ir/article-1-2431-en.html
URL: http://eprj.ir/article-1-2431-en.html
1- Department of Economics, Shi.C., Islamic Azad University, Shiraz.
2- Department of Economics, Shi.C., Islamic Azad University, Shiraz (Corresponding Author). ,ebrahimi46@iau.ac.ir
2- Department of Economics, Shi.C., Islamic Azad University, Shiraz (Corresponding Author). ,
Abstract: (844 Views)
This study provides an applied examination of the Comanor-Leibenstein approach in measuring the social costs of monopoly across selected Iranian industries during the period 2002–2022. Within this framework, welfare losses from monopoly are not confined to “allocative inefficiency” but also encompass “X-inefficiency” (resource waste arising from internal managerial shortcomings) as a fundamental component. Using panel data from the Statistical Center of Iran and employing advanced econometric techniques (such as GMM and SUR), key variables of the model—including price elasticity of demand, marginal cost, and X-inefficiency—were estimated. The findings indicate, first, that basic and strategic industries (such as iron and steel and automobile manufacturing) account for the largest share of total welfare costs. Second, the long-term trend of welfare losses is upward, with a particularly alarming acceleration in the final years of the period (2019–2022), nearly doubling in magnitude. These results highlight the intensification of monopoly-related crises and their direct impact on the decline of public welfare in Iran’s economy.
Keywords: Monopoly, X-inefficiency, Social Costs of Monopoly, Comanor–Leibenstein approach, Selected Industries
Type of Study: Research |
Subject:
industrial economics
Received: May 25 2026 | Accepted: Aug 22 2026 | ePublished: Oct 05 2026
Received: May 25 2026 | Accepted: Aug 22 2026 | ePublished: Oct 05 2026
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