Open AccessTradeoff between marginal welfare costs
Author(s) -
Mário Alexandre P. M. da Silva
Publication year - 2016
Publication title -
notas económicas/notas económicas
Language(s) - English
Resource type - Journals
eISSN - 2183-203X
pISSN - 0872-4733
DOI - 10.14195/2183-203x_22_3
Subject(s) - monopoly , procurement , marginal cost , social welfare , benchmark (surveying) , social cost , microeconomics , government (linguistics) , economics , welfare , public economics , marginal utility , business , complete information , industrial organization , marketing , market economy , political science , linguistics , philosophy , geodesy , law , geography
This paper studies the implications of a tradeoff between the social costs of public funding and the social costs of monopoly in a framework of government procurement and a framework of regulation both under incomplete information. The directions of cost, effort and output distortions are determined with reference to the complete information benchmark.