Meaning of Harberger triangle | Babel Free

Definitions

A graphical representation of the deadweight loss (as measured on a supply and demand graph) in the trade of a given product or service caused by market failure or government failure.

Examples

““It takes a heap of Harberger triangles to fill⟳ an Okun gap,” wrote James Tobin in 1977, four years before winning the Nobel Prize in economics. He meant that the big issue⟳ in economics was not battling against monopolists but preventing recessions and promoting recovery. […] The Harberger triangle is the loss to society as monopolists raise⟳ their prices, and it is named after Arnold Harberger, who 60 years ago discovered that the costs of monopoly were about 0.1 per cent of US gross domestic product […]”

CEFR level