Abstract
In this paper we argue that the welfare loss from monopoly equals deadweight loss plus expenditures by monopolists to defend and antitrust enforcers to attack their monopolies. A model of a profit-maximizing monopolist and a social loss-minimizing antitrust enforcer is developed. We find ambiguous effects of deadweight loss and the price of resources used by either party (in maintaining or attacking the monopoly) on the total welfare loss from monopoly. Monopoly profit has a positive but diminishing impact on monopoly welfare loss.
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