Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059524 | Economics Letters | 2013 | 4 Pages |
Abstract
The notion of effective space is introduced, and input congestion is explained by economic activities' exhaustion of effective space. In this setting, I show that profit maximization is inconsistent with input congestion at the firm level, but not necessarily with input congestion at the industry level, when effective space is shared among producers.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Kenneth Løvold Rødseth,