Indirect public control of self-managed monopolies |
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Authors: | Roger Guesnerie Jean-Jacques Laffont |
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Affiliation: | 1. Ecole des Hautes Etudes en Sciences Sociales, Paris, France;2. Université de Toulouse I, Toulouse, France |
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Abstract: | How difficult is it and by what means is it possible to control a self-managed firm that has some monopoly power? To answer this question, classical modeling options are adopted: static framework, maximization by the firm of value added per capita. Three assumptions are added: perfect information on technologies by the Center, availability of unlimited lump-sum transfers and linear excise taxes, and market clearing. Attention is thus restricted to allocational problems, ruling out concern for distribution and regulation. |
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