An alternative way of determining the range of Averch and Johnson's Lagrange multiplier: a note

In this note, an alternative method is developed for determining the range of values assumed by the Lagrange multiplier of Averch and Johnson's constrained maximization problem. By assuming that the regulated firm's profit function is single-peaked, the approach is rather general.

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Year of publication:	2006
Authors:	Borrmann, Jorg ; Finsinger, Jorg
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 13.2006, 5, p. 269-271
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005435066