SALANT, DAVID J.; WOROCH, GLENN A. - In: Contemporary Economic Policy 9 (1991) 2, pp. 101-114
This paper borrows Dupuit's parable of a bridge so as to reexamine the problem of selecting and financing public investment projects in a dynamic and strategic setting. A regulator imposes a price ceiling, and a firm makes a sunk investment each period. Three simple examples reveal the...