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American Economic Review 1977

Weak invisible hand theorems on the sustainabilily of prices in a multiproduct natural monopoly

William J. Baumol; Elizabeth E. Bailey; Robert D. Willig

Abstract

Investigates the conditions under which a 'natural monopoly' can find a set of prices and a set of products that are sustainable against competitive entry. Ramsey rule for Pareto optimal pricing under a budget constraint; Relation between subadditivity of costs and sustainability; Conditions sufficient for sustainable prices; Uncertainty of sustainability. (Из Ebsco)

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