Article ID Journal Published Year Pages File Type
5059524 Economics Letters 2013 4 Pages PDF
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.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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