This paper applies the econometric model of investment behavior developed in our earlier paper to the U.S. telephone industry. Utilizing annual data for the period 1949 to 1968, the author finds that the estimates of long-run elasticities of capital stock with respect to relative price and...

Even the best investors seem to find it hard to do better than the comprehensive common-stock averages, or better on the average than random selection among stocks of comparable variability. Examination of historical samples of percentage changes in a stock's price show that, when these relative...

The Modigliani-Miller theorem on the irrelevancy of financial structure implicitly assumes that the market possesses full information about the activities of firms. If managers possess inside information, however, then the choice of a managerial incentive schedule and of a financial structure...

Jorgenson and Handel (J-H) applied their recently developed econometric model of investment behavior in U.S. regulated industries to four subindustries of the regulated sector. In their derivation of the demand for capital, they assumed constant returns to scale and unitary elasticity of...

This comment presents an analysis of the effect of regulation on the sales-maximizing firm, and shows that the models used in earlier works have been incorrectly specified. It is demonstrated that under relatively weak conditions, regulation via a "fair" rate of return constraint has no...

Competition is not a natural state. Under it, firms become dissatisfied with performance and work to change the structure. What they seek is a structure that supports sufficient discipline to assure individual actions consistent with common interests. Often, the changes have been effected before...

The paper describes a von Stackelberg model of pricing behavior by a dominant firm in a market for an exhaustible resource. The results obtained differ dramatically from those that characterize a pure monopoly. If the marginal production cost in the competitive fringe is constant, the optimal...

This paper surveys and critiques the financial models of the firm used in rate of return regulation. The increasingly wide assortment of models used in rate of return cases might appear to promise a rich classification of contrasting assumptions and a diverse catalogue of model constructs....

This paper uses a model of search to derive testable hypotheses about the relationships among the distributions of prices which prevail in areas whose residents have different income levels. The hypotheses are examined by using data obtained from a comprehensive survey of food prices conducted...

The main emphasis in this study is on gas discoveries. They constitute the propelling force behind gas supply, and of the two broad relationships for which results are reported here - namely, discoveries and extensions and revisions - gas discovery is (qualitatively) the more important....