Optimal Subsidy Functions.
Abstract
The report discusses the specific problem of controlling a monopoly when market demand is used as the basis for measuring benefits. The control tool used to achieve the regulators objectives is called an 'optimal subsidy funtion'. It is shown that while such an optimal function always exists for the one good case, when more than one good is involved existence requires equality of the market cross derivatives of demand with respect to price. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1977
- Accession Number
- ADA051488
Entities
People
- Gregory G. Hildebrandt
Organizations
- United States Air Force Academy