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Frisch, Hotelling, and the marginal-cost pricing controversy. (English) Zbl 0995.91012
Strøom, Steinar (ed.), Econometrics and economic theory in the 20th century. The Ragnar Frisch centennial symposium. Papers from the symposium held in Oslo, Norway, March 3-5, 1995. Cambridge: Cambridge University Press. Econ. Soc. Monogr. 31, 319-342 (1998).
The author studies classical works of Smith, Hotelling, Frisch, and others, and performs some original research, trying to answer the following questions: 1) What is the exact intellectual origin of the policy of pricing at marginal cost, with public funding of deficits? 2) What was the content of the marginal cost controversy, and what was the role of Frisch in that debate? 3) How can we discuss today the incentives and political-economy issues concerning pricing rules of increasing-returns industries, for simplicity restricting the discussion to natural monopolies?
For the entire collection see [Zbl 0944.00092].
91B24 Microeconomic theory (price theory and economic markets)