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- W3170355268 abstract "Abstract Why is an increase in income inequality often accompanied by an increase in socioeconomic segregation? And what are the welfare implications of this comovement? This paper uses a theoretical model to analyze the relationship between income inequality and socioeconomic segregation. It shows that rising inequality can trigger sorting according to income, as a monopolist's profits from offering sorting increase with income inequality. It also examines the relationship between sorting and social welfare and shows that profit‐maximizing sorting patterns are not necessarily optimal from a welfare perspective. In fact, for a broad field of income distributions (monopolist) profits increase with inequality, while at the same time total welfare from sorting decreases." @default.
- W3170355268 created "2021-06-22" @default.
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- W3170355268 date "2021-06-03" @default.
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- W3170355268 title "Monopolistic supply of sorting, inequality, and welfare" @default.
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- W3170355268 doi "https://doi.org/10.1111/jpet.12518" @default.
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