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In order to incorporate demand interdependencies into the analysis of fairness between the different consumer groups of a multi-product public utility, Baumol (1986) designed the burden test. This test checks whether the price of a single good generates net incremental revenues which cover at...
Persistent link: https://www.econbiz.de/10014589063
Anderson, Goeree and Ramer (1997) observe that although the Uniform consumer density is almost universally assumed in Hotelling style location games, it is more realistic to assume non-uniform distributions. Using Anderson et al.'s (1997) sufficient conditions for the existence of a unique pure...
Persistent link: https://www.econbiz.de/10005458931