Argenton, Cédric (contributor) - 2006 - Rev. May 8, 2006
respect to their production costs. The agreed-upon standard always falls short of the joint-profit-maximizing (or, for that … matter, the efficient) level. It is decreasing in the high-cost producer's cost of production. Yet, it first increases then … decreases with the low-cost producer's cost of production, showing that the latter's bargaining position can be enhanced by …