IDEAS home Printed from https://ideas.repec.org/a/rje/bellje/v7y1976ispringp308-313.html
   My bibliography  Save this article

Integration Effects of Firms Subject to Regulation

Author

Listed:
  • Yoram Peles
  • Eytan Sheshinski

Abstract

The standard model of the regulated firm assumes that the monopoly produces one homogeneous output with two inputs, capital and labor. However, many firms subject to regulatory constraint, particularly public utilities, produce a multitude of products, with related or unrelated demands. This paper explores the modifications required by the latter case in the standard Averch-Johnson model. The effects of mergers between regulated monopolies is also studied. It is shown that, in general, mergers lead to changes in the composition of outputs and the factors that determine the direction of these changes are analyzed. Finally, it is proved that the well-known result concerning the desirability of regulation can be extended, when demands are independent, to the many-good case.

Suggested Citation

  • Yoram Peles & Eytan Sheshinski, 1976. "Integration Effects of Firms Subject to Regulation," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 308-313, Spring.
    • Handle: RePEc:rje:bellje:v:7:y:1976:i:spring:p:308-313
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0361-915X%28197621%297%3A1%3C308%3AIEOFST%3E2.0.CO%3B2-S&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mirucki, Jean, 1980. "Vérification des conditions d'efficacité dans la production chez Bell Canada [Checking the conditions of efficient production in Bell Canada]," MPRA Paper 30147, University Library of Munich, Germany, revised Jun 1980.
    2. Mirucki, Jean, 1980. "Comportement de l'entreprise réglementée: étude de l'hypothèse Averch-Johnson [Behavior of the Regulated Firm: A Study of the Averch-Johnson Hypothesis]," MPRA Paper 27669, University Library of Munich, Germany, revised 1982.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:7:y:1976:i:spring:p:308-313. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rje.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.