Competition and poverty: Does the type of competition matter?

Ghazzai, Hend

Competition and poverty: Does the type of competition matter? - 2024.


93

We study the impact of the nature of the competition on poverty. More precisely, we check whether the results obtained by Ghazzai et al. (2023) on the effect of competition on poverty in the case of price competition remain valid for quantity competition. We consider a general equilibrium model with vertical preferences. Taking into account the ownership structure, we compare poverty under two market structures: Monopoly and Duopoly. Poverty is measured by the size of the population whose income falls below an exogenous poverty line. The new results confirm those of Ghazzai et al. (2023), showing that policies aimed at fostering competition are not always effective at reducing poverty. JEL classification codes: D43, I32, L13.

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