Estimation of monopoly welfare loss in Iranian milk production industry

  The aim of this study is to estimate the fluid milk demand function and calculation of Welfare Loss due to monopoly power in milk production industry in 13 provinces from 2001 to 2005(65 observation). In this study, after Estimation of milk demand function, Welfare Loss due to monopoly power in fluid milk market via SCP model was calculated. The results revealed that milk price had negative effect on milk demand. On the other hand, price of substituted potables and advertisement costs had positive impact on fluid milk demand. Results indicate that welfare loss during 2001-2003 is increasing but from 2003 to 2005 has had a decreasing trend.   JEL Classification: D4, D6 , F12, Q13