Document Type : Research Paper
Authors
1
Professor of Economics, Payam Noor University, Tehran ,Iran
2
Professor of Economics, Payam Noor University
3
Assistant Professor of Economics, Payam Noor University ,Tehran ,Iran
4
phd student of Department of Economics, Payam Noor University, Tehran, Iran
10.22034/epj.2024.20630.2498
Abstract
The monopoly function in Iran's economy is not only caused by the behavior of a number of economic activists, but after the revolution of 1357, based on priciple 44 of the Constitution, it took a legal basis. Considering that monopoly has allocative, distributional and welfare effects, this article tries to measure the intensity of monopoly in Iran's large industries based on the mark-up criterion .For this purpose, while using the data of ten large two-digit industries in Iran's industrial sector, Stochastic Frontier Function Approach approach is used to measure markup.The findings of the research indicate that the average size of the markup during the research period is equal to 5.222 and also the production industry of steam generators, except for hot water for central heating, with Lerner's index equal to 0/998 has the highest monopoly power among Iranian industries.
Also, the findings show that the overall concentration in Iran's industries is high, out of seventy large industries, only two industries have 43.3% of the total sales of the industry sector, the size of each of these two industries is larger than ten percent. Also, eleven industries have a share of more than 5% of the sales of the industry sector, and these eleven industries together have 82.3% of the total sales of the industry sector. All the above figures indicate a high general concentration in Iran's industrial sector.
Also, according to the size of the return to scale RTS = 1.471, it is clear that the industries studied in this research are in the range of increasing returns to scale.In other words, the production scale of Iran's companies and industries is small, and all the available potential to reduce costs has not been used
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