A Simple Model of Firm Behavior Under Regulation and Uncertainty

This paper is an analysis of how a firm behaves in the face of uncertainty about demand and cost conditions and a known constraint on the rate of return it is allowed to earn. Under these conditions it is improbable that regulation could force a monopoly to make competitive investment and output decisions. This discouraging result is due to uncertainty per se and not to the phenomena discussed by Averch and Johnson.

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Year of publication:	1973
Authors:	Myers, Stewart C.
Published in:	Bell Journal of Economics. - The RAND Corporation, ISSN 0361-915X. - Vol. 4.1973, 1, p. 304-315
Publisher:	The RAND Corporation

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005133283