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The Rate-of-Return Regulated Firm: Cost and Production Duality

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  • Rolf Fare
  • James Logan
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    Abstract

    A duality between cost and production is established for a firm subject to rate-of-return regulation. To this end, a rate-of-return regulated production function is defined and shown to exist. It is then shown how information regarding the unregulated technology can be obtained from the rate-of-return regulated cost function. With knowledge of the rate-of-return constraint, the rate-of-return regulated production function can be reconstructed.

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    Bibliographic Info

    Article provided by The RAND Corporation in its journal Bell Journal of Economics.

    Volume (Year): 14 (1983)
    Issue (Month): 2 (Autumn)
    Pages: 405-414

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    Handle: RePEc:rje:bellje:v:14:y:1983:i:autumn:p:405-414

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    Cited by:
    1. Gerald Granderson, 2000. "Regulation, Open-Access Transportation, and Productive Efficiency," Review of Industrial Organization, Springer, vol. 16(3), pages 251-266, May.

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