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All Journal Daengku: Journal of Humanities and Social Sciences Innovation
Alisyahbana, Andi Naila Quin Azsisah
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Humanities Education Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Other

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From Competition to Concentration: Theoretical Evolution of Market Power through Monopoly and Monopsony Fatmawati, Fatmawati; Nurbayani, Sri Undai; Alisyahbana, Andi Naila Quin Azsisah; Isma, Andika; Muflih, Betania Kartika
Daengku: Journal of Humanities and Social Sciences Innovation Vol. 5 No. 4 (2025)
Publisher : PT Mattawang Mediatama Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35877/454RI.daengku4472

Abstract

This study explores the theoretical evolution of market power from classical competition toward concentrated market structures, emphasizing the dual manifestations of monopoly and monopsony. Using a systematic literature review of foundational and contemporary sources, the research traces how microeconomic theory has transitioned from equilibrium-based efficiency models to dynamic analyses of strategic behavior, information asymmetry, and digital dominance. The findings reveal that monopoly and monopsony are symmetric mechanisms of price distortion—each reducing welfare through the restriction of mutually beneficial exchanges. Monopolies elevate prices by controlling output, while monopsonies depress input prices by restricting demand, resulting in comparable deadweight losses and efficiency reductions. Empirical evidence shows that rising market concentration, particularly in digital industries, has deepened income inequality and diminished labor’s share of output. Digital platforms exemplify the convergence of monopoly and monopsony power, leveraging data analytics, algorithms, and network effects to dominate both product and labor markets. These dynamics extend traditional theories of market power beyond static frameworks, emphasizing their systemic and global nature. The study concludes that contemporary market power demands an integrated analytical and policy approach. Effective regulation must simultaneously address consumer welfare, labor market fairness, and innovation incentives. By synthesizing insights from industrial organization, welfare economics, and digital competition studies, this paper contributes to a refined understanding of how monopoly and monopsony shape economic outcomes in the twenty-first century. The results highlight the need for adaptive competition policies to preserve efficiency and equity in a data-driven global economy.
Macroeconomic Policy Analysis on Labor Absorption in the Manufacturing Industry Sector of South Sulawesi Alisyahbana, Andi Naila Quin Azsisah; Fitrianti, Retno; Isma, Andika; Muflih, Betania Kertika
Daengku: Journal of Humanities and Social Sciences Innovation Vol. 5 No. 6 (2025)
Publisher : PT Mattawang Mediatama Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35877/454RI.daengku4507

Abstract

This study examines the determinants of regional economic performance with a particular focus on the roles of democracy and investment as key drivers of economic development in South Sulawesi. Using panel data from 24 districts and municipalities over the 2021–2023 period, this research analyzes how variations in political governance, investment flows, and structural economic characteristics shape regional growth outcomes. The study employs a panel regression approach comparing Pooled OLS, Fixed Effects, and Random Effects models to obtain consistent estimations and identify the most appropriate specification for explaining regional economic dynamics. The analysis highlights the conceptual significance of democracy as an institutional foundation that influences policy effectiveness, government accountability, and stability, all of which contribute to a conducive environment for economic activity. Investment is also positioned as a critical economic instrument that supports productivity, technological diffusion, and industrial upgrading. The findings indicate that the relationship between democracy, investment, and regional economic performance is not uniform across regions, reflecting differences in institutional capacity, labor quality, and industrial structure. Furthermore, the results emphasize that democratic governance and investment inflows operate as complementary forces: improvements in democratic quality can strengthen investor confidence, while investment outcomes can reinforce governance legitimacy by generating economic benefits. This study provides theoretical and empirical insights into how these variables interact in shaping regional development trajectories. The implications of this research underscore the need for region-specific strategies that integrate institutional strengthening, targeted investment policies, and human capital development to achieve sustainable and equitable economic growth.
Co-Authors Andika Isma Betania Kartika Muflih Fatmawati, Fatmawati Fitrianti, Retno Muflih, Betania Kertika Sri Undai Nurbayani