Monopolies in High-Density Areas Boost Economic Welfare, Study Finds.
The article compares different models of economic markets to see how they affect economic welfare. Traditional theory says perfect competition is best, but with scattered buyers and transportation costs, this may not be true. The study finds that in high-density areas, a multiplant monopolistic model may be better than a competitive one. The models assume firms have fixed market areas and make price changes together. Free entry is allowed in the long run.