The Korean Economic Forum
Markets and Inequality
In Ho Lee (Seoul National University)Year 2018Vol. 11No. 1
Abstract
Economic inequality among members of an economy is an importantphenomenon. The importance of the phenomenon makes it necessary that weunderstand the source of the problem, not just the observation. This paperattempts to study the relationship between market competition and inequality.We analyze the mechanism through which market competition generatesinequality and then the positive effect and negative effect of inequality on theresource allocation in the economy. We also examine the role of losers ofmarket competition.}