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Bottleneck 1 Duopol 1 Duopoly 1 Engpass 1 Infrastructure investment 1 Infrastrukturinvestition 1 Market power 1 Marktmacht 1 Theorie 1 Theory 1
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English 1
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Verhoef, Erik T. 1
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Tinbergen Institute Discussion Paper 12-064/3 1
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Cost Recovery of Congested Infrastructure Under Market Power
Verhoef, Erik T. - 2012
The famous Mohring-Harwitz theorem states that, under certain technical conditions, the degree of self-financing of congested infrastructure is equal to the elasticity of the capacity cost function in the optimum, so that under neutral scale economies exact self-financing applies. Although the...
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