Interdependencies with the private economy

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 188)


Deviating from earlier chapters we will now explicitly take into account the behavior of other economic agents and consider the optimal policy of a public enterprise in such cases. The minimization of welfare losses may require an adjustment of public-enterprise decisions in cases of
  • — interdependencies caused by producers (If private sellers deviate from marginal costs, what are the welfare-maximizing prices of the public enterprise?),

  • — interdependencies caused by consumers (Which prices shall a public enterprise choose to influence the private demand structure in a wanted direction, for instance shifting demand from private means of transportation to public ones?).


Marginal Cost Private Enterprise Reaction Function Public Enterprise Price Structure 
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Copyright information

© Springer-Verlag Berlin Heidelberg 1981

Authors and Affiliations

  1. 1.Institut für Gesellschafts- und WirtschaftswissenschaftenUniversität BonnBonnGermany

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