Optimal regulation with unknown demand and cost functions
Article Abstract:
A study of the optimal conditions for regulating a firm with private information of both its cost and demand functions indicated two possible situations. An alignment of social and private incentives for pricing yielded straightforward and optimal prices above marginal costs. When these incentives diverged, or when demand uncertainty was more significant than cost uncertainty, optimal results are obtained for prices below marginal costs.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1999
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A role for monetary policy when prices reveal information: an example
Article Abstract:
Research investigating ways in which monetary policies can determine revealed information is presented, on the basis of an example. Particular attention is given to the possibility for monetary policies to reveal all the information at equilibrium.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2000
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Bertrand-Edgeworth competition, demand uncertainty, and asymmetric outcomes
Article Abstract:
Investment and pricing in a symmetric Bertrand-Edgeworth framework with demand uncertainty, are examined.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 2000
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