Personal income distribution and market structure - 2001

Corrado Benassi , Roberto Cellini , Alessandra Chirco Full Version (PDF)
(Quaderni del Dipartimento di Scienze Economiche e Matematico-Statistiche dell'Università del Salento - Collana di Economia, 01/01 / 2001)
Income distribution affects demand and its elasticity, and, as a consequence, the optimal behaviour of firms and market equilibrium. This paper focuses on the effects of income polarisation, and presents a model where for any unimodal density function describing income distribution of the consumers income polarisation leads to market concentration, i.e., to a smaller number of firms able to survive in the long run, provided that the firms’ fixed costs are succiently low.

Table of Contents


Introduction     PDF
Corrado Benassi , Roberto Cellini , Alessandra Chirco 2-3

The basic model     PDF
Corrado Benassi , Roberto Cellini , Alessandra Chirco 3-7

Income distribution and the number of firms     PDF
Corrado Benassi , Roberto Cellini , Alessandra Chirco 7-9

Final comments     PDF
Corrado Banassi , Roberto Cellini , Alessandra Chirco 9-11

Appendix     PDF
12-13


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