Resource Allocation and the Regulated Firm: Comment on the Comments

The revenue-maximizing firm presumably has an internal return requirement that is at least as large as the maximum return permitted by a regulatory agency. In this case, which is the only one that seems economically meaningful, the undercapitalization result of Bailey-Malone holds throughout the elastic region of the revenue curve.

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Year of publication:	1973
Authors:	Bailey, Elizabeth E.
Published in:	Bell Journal of Economics. - The RAND Corporation, ISSN 0361-915X. - Vol. 4.1973, 1, p. 288-292
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/10005353615