Shifts in income distribution impact market output under competition and monopoly.
The article explores how changes in the distribution of consumers' willingness to pay can impact market outcomes in network markets. The researchers studied the effects of these changes in both competitive and monopoly market settings. They found that under perfect competition, shifts in income distribution lead to higher output if costs are low. However, in a monopoly situation, the final market outcome depends on how income distribution and network effects influence market demand elasticity.