
Accession Number : AD0662229
Title : A NOTE ON TAXATION, INCREASING RETURNS DUE TO SETUP COSTS AND COMPETITIVE EQUILIBRIUM,
Corporate Author : YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
Personal Author(s) : Shubik,Martin
Report Date : 07 NOV 1967
Pagination or Media Count : 13
Abstract : Given the following problem: Suppose that a closed economy has all of the properties of convexity of preference sets and production sets except that in order to use certain production processes setup costs must be paid. The set up costs cause increasing returns and destroy the competitive equilibrium; is there a tax policy which restores the equilibrium and would it always be approved unanimously or by a majority vote. This problem is discussed in this report.
Descriptors : (*ECONOMICS, MATHEMATICAL MODELS), OPTIMIZATION, COSTS, GAME THEORY
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE