Abstract
In this article market power and consumer welfare are discussed in relation to the white goods industry.
1. Short-run welfare losses carried by domestic consumers, following from a highly concentrated industry structure, are put into a more dynamic and long-run context. National concentration ratios give very limited information in industries where competition is becoming increasingly international, or even global, in character. Swedish consumers gain by having perhaps the most efficient producer in the world - Electrolux - based in Sweden. However, two issues emerge regarding consumer welfare: the vertical structure in Sweden is dominated by Electrolux, and Electrolux does not face domestic rivals.
