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A generalized envelope theorem with an application to congestion-prone facilities

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Author Info
Marvin Kraus () (Boston College)

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Abstract

A generalized envelope theorem is presented which has the Envelope Theorem as a special case. Relative to the Envelope Theorem, it provides greater flexibility in determining the rate of change of a value function with respect to one of its arguments. We revisit a classic result on economies of scale for a congestion-prone facility, using the flexibility of the Generalized Envelope Theorem to provide a simpler, more intuitive proof.

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File URL: http://www.economicsbulletin.com/2002/volume3/EB-02C60005A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 3 (2002)
Issue (Month): 28 ()
Pages: 1-4
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ebl:ecbull:v:3:y:2002:i:28:p:1-4

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Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA
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Related research
Keywords: congestible facilities; Envelope Theorem; scale economies analysis;

Find related papers by JEL classification:
C6 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming

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This page was last updated on 2009-12-12.

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