Abstract

ALBERRO, José  and  SCHWABE, Rainer. Reconsidering the Evaluation of the Distributive Effects of the Exercise of Market Power in Mexico. El trimestre econ [online]. 2016, vol.83, n.331, pp.459-492. ISSN 2448-718X.  https://doi.org/10.20430/ete.v83i331.207.

In 2008, Mexico’s Federal Competition Commission (CFC) commissioned a study of the distributive effects of market power which has influenced the national discussion on competition policy. In this paper, we attempt to replicate its results, we extend them to future years, identify and correct deficiencies in the analysis, and evaluate the conceptual and methodological framework employed. We conclude that the method used does not produce reliable results. Furthermore, using the same method, we estimate a welfare loss between 0.8 and 2.1% of total spending, depending on the income decile. While the conclusion that lower income households are more severely affected by the exercise of market power holds, we find that this effect is greater in urban areas than in rural areas for the lowest income households.

Keywords : competition; monopoly; market power; income distribution; welfare; Mexico.

        · abstract in Spanish     · text in Spanish     · Spanish ( pdf )