price equilibrium can emerge. The paper shows that this outcome can be socially optimal and that, while a move from monopoly …

, suffer a loss, that is not offset by gains to the monopolist. This is the "deadweight loss" from monopoly, and in … conventional analysis the only social cost of monopoly. The loss suffered by those who continue to buy the product at the higher … cost is regarded merely as a transfer from consumers to owners of the monopoly seller and has not previously been factored …

absolute margin. We derive these results in both a monopoly model and a variety of different competitive models. We conclude …