A Method of Measuring the Social Welfare on Homogeous Product Market
Hongmin Chen · Systems Engineering · 2001
In order to estimate the social welfare and the total cost in the industry by some general indexs such as market price and market concentration index, this paper applies the game theory and differential technology to study the relationship among market concentration index, average marginal cost of industry and market price by analysing a general equilibrium in the market of homogeous products.A method to calculate total cost of industry and social welfare is offered.