Titlebook: Antitrust and Economic Efficiency; Charles K. Rowley Textbook 1973Latest edition Macmillan Publishers Limited 1973 economics.efficiency.po

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The Social Welfare Function,were to be implemented than if it were not. Such a decision is impossible until the value premises upon which social welfare is to be measured have been determined. The traditional starting-point in the economic theory of public policy is the Pareto principle, and it is worth outlining the value pre

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劇本

The Impact of Scale Economies,ale economies might be sacrificed as a consequence of an effective antitrust policy was always recognised by economists actively engaged in the industrial organisation field. Only in 1968, however (Williamson [84]), was the possibility of a welfare trade-off between the cost savings from scale econo

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The Relevance of X-Inefficiency,costs for any selected rate of output. This assumption seems to follow quite naturally from the basic postulate that firms set out to maximise profit, and in part for this reason there has been little effort made to justify the ‘cost-efficiency’ concept in the conventional wisdom of economics. Indee

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Invention and Innovation,e, whereas innovation is usefully defined as invention applied commercially for the first time. The close relationship between these separate processes does not necessarily imply that the social welfare problems they present are identical, though in many respects the two processes can be jointly ana

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The Evidence, intervention. Rather, a brief indication of the more significant findings is provided in this section with reference to allocative inefficiency and X-inefficiency as welfare gains and scale economies as welfare losses from antitrust intervention. Great confidence should not be placed in these resul

contradict

Some Theoretical Complications,n this way important insights have been gained into the relevant issues in the antitrust debate. Nevertheless, these cases are not representative of real-world market organisation and it is now necessary to review the more important modifications to the trade-off analysis which are required once mor

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