خلاصة:
The main objective of this research is to evaluate the social costs of monopoly in Iranian concentrated industries during 1996-2006. Leibenstein approach has been employed to evaluate the social costs. Leibenstein believed that most monopolistic industries operate inefficiently because of being in the safe margin. Hence, he proposed that the costs of inefficiency be added to the welfare triangle. Results show that "manufacture of tobacco products, recycling, mnufacture of medical, precision and optical instruments, watches and clocks, manufacture of coke, refined petroleum products and nuclear fuel, manufacture of fabricated metal products, except machinery and equipment " have imposed the most social cost on the society due to their inefficiency and deadweight loss of the welfare triangle. The social cost that these industries imposed on the society is equal to 100.47, 54.701, 41.039, 39.509 and 31.241 percent of the sales, respectively. In other words, a social cost of 24.01 percent of the sales is imposed on consumers in Iran by the concentrated industries.
ملخص الجهاز:
Evaluation of Social Cost of Monopoly in Iranian Industries: Leibenstein Approach Mohammad Nabi Shahiki Tash Department of Economics,University of Sistan and Baluchestan, Zahedan, Iran mohammad_tash@eco.
Results show that "manufacture of tobacco products, recycling, mnufacture of medical, precision and optical instruments, watches and clocks, manufacture of coke, refined petroleum products and nuclear fuel, manufacture of fabricated metal products, except machinery and equipment " have imposed the most social cost on the society due to their inefficiency and deadweight loss of the welfare triangle.
Introduction Based on the microeconomics and industrial economics theories, it is expected that the monopoly leads to disruption in optimal allocation of resource and welfare costs for the consumers.
Now, the aim of this study is to investigate how much welfare cost has been imposed on society due to the governance of effective monopoly structure in Iranian industrial sector.
Shahiki Tash and Ekhtiari (2009) in their article titled "Estimating the welfare cost of effective monopoly in Iranian insurance industry," investigated the effective degree of monopoly in insurance market and estimated the welfare cost of this structure on insurance services recipients using the indexes of Harberger, Posner and Mueller.
Measuring the Social Cost of Iranian Concentrated Industries In this research in order to identify the monopoly industries in Iran, the concentration Index of Herfindahl-Hirschman (HHI) has been used.
So, in order to measure social cost of welfare triangle and inefficiency in Iranian concentrated industries, in this study, the Leibenstein approach was used.