Relationships between economic theory variables and mathematical instruments for assessing competition conditions and market power

Authors

  • Jacques Lartigue-Mendoza Universidad Anáhuac México
  • Salomón Domínguez Universidad Anáhuac México

Keywords:

Competition conditions, market power, market concentration, competitive markets

Abstract

The sole existence of a market does not guarantee the maximum level of efficiency and social welfare it can provide through a competitive structure. As a result, a set of theoretical relationships and mathematical instruments have been developed to measure how far existing markets are from being competitive; as well as how much power firms have for setting prices and earn more than they would do in competitive markets. In this line, the current paper discusses and integrates diverse theoretical relationships and mathematical instruments underlying the assessment of competition conditions and market power and exhibits how the estimation of these instruments can be simplified to require only two variables: market shares and the price elasticity of demand.

Author Biographies

Jacques Lartigue-Mendoza, Universidad Anáhuac México

Professor/researcher at the Faculty of Business and Economics at Universidad Anáhuac México, member of the National System of Researchers of CONAHCYT, and specialist for economic issues of the Mexican Federal Judicial Authority. He graduated from the Ph.D. in economics at The State University of New York (SUNY) at Stony Brook and the master in Economics at Universidad de Guadalajara.

Salomón Domínguez, Universidad Anáhuac México

Ph.D. in Mathematical Sciences from the Universidad Nacional Autónoma de México and has been a research professor at the Universidad Anáhuac, Mexico since 2018. He has developed theoretical research in abstract mathematics (cluster algebras) and applied economics research (labor economics). His areas of interest in economics are financial inclusion, labor economics and economic competition.

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Published

2024-09-05

Issue

No. 33 (2024): N° 33: ENE-JUN 2024

Section

Original reflection article

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