Little adjustment in labor or leisure time is possible because of standardized work weeks in many countries. Without such labor-leisure adjustment, the logic of the inverse-elasticity-rule form of Ramsey price, with its differing percentage markups, is undermined. Moreover, if consumption of a...

Forty percent of first-class mail is workshared, meaning that mailers perform part of the postal service work, such as sorting, in exchange for a price discount. Here the optimal discount is shown to depend on whether mailers workshare all their mail. If they do, their marginal decisions will...

Here it is shown how capital waste can be motivated under rate-of-return regulation, even when the marginal product of capital is positive. This result means that the sign of the marginal product of capital is not adequate as a basis for defining waste. The wasteful use of capital is motivated...