A Comment on the "Efficient Allocation of Resources in a Regulated and Unionized Monopoly"

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Albert N. Link, Professor (Creator)
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: In the April 1976 issue of this Journal Mirakhor suggested that an efficient allocation of resources is possible for a profit maximizing monopolist operating under regulatory and union constraints. This analysis may be extended by assuming the monopolist augments the factors of production by selecting technologies from a closed, exogenously determined, set of techniques. Under this additional constraint, efficient resource allocation implies that factor augmentation is solely determined by relative input costs, ceteris paribus. It can also be demonstrated that the innovational constraint accentuates the incentive for labor augmentation when the regulatory constraint is active, or it accentuates the incentive for capital augmentation when the union constraint is active.

Additional Information

Language: English
Date: 1977
resource allocation, economics, efficiency, unionized monopoly, monopolies

Email this document to