Markets, Monopolies and Moguls: The Relationship between Inequality and Competition

Andrew Leigh, Adam Triggs

    Research output: Contribution to journalArticlepeer-review

    16 Citations (Scopus)

    Abstract

    Analysing private market research data, we estimate the degree of market concentration across 481 industries in the Australian economy. On average, the largest four firms control 36 per cent of the market. Some industries are considerably more concentrated. In department stores, newspapers, banking, health insurance, supermarkets, domestic airlines, Internet service providers, baby food and beer, the biggest four firms control more than 80 per cent of the market. We suggest ways in which high market concentration may increase inequality and discuss some policy ideas to address the problem.

    Original languageEnglish
    Pages (from-to)389-412
    Number of pages24
    JournalAustralian Economic Review
    Volume49
    Issue number4
    DOIs
    Publication statusPublished - 1 Dec 2016

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