Discussion of M. Boiteux’s Paper
In his opening remarks, M. Boiteux indicated that Electricité de France invested about 4 billion dollars per year, and the gestation lag until these investments generated income was up to 6 years in the case of nuclear power plants. In making investment decisions of that order of magnitude, intuition could be useful to some extent, but was insufficient by itself. Mistakes were very costly, and sophisticated planning models played an essential role in reducing costs.
KeywordsIncome Monopoly Baumol
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