Output Diffusion of the Monopolist over Time and Space

• 발행기관: 한국재정학회(구 한국재정·공공경제학회)
• 저자명: Hyungho Youn Patrick De Leenheer Victor Tremblay
• 간행물 정보: 『한국재정학회 학술대회 논문집』2015년도 추계학술대회 논문집, 1~11쪽, 전체 11쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2015.09.30

영문 초록

In this paper, we develop an output diffusion model in which a monopoly firm faces a cost of adjusting output over time and across geographic regions. First, we investigate a dynamic monopoly model and a simple spatial model with only regional adjustment costs. Then, we explore how the firm maximizes profits over time and space, a problem of calculus of variation. The Euler equation yields a partial differential equation, the output diffusion model. It extends the traditional inter-temporal output path into output diffusion over time and space. As long as regional adjustment costs exist, steady-state output in the diffusion model is less than the static monopoly output level. This model suggests that a policy designed to lower regional adjustment costs can increase supply in all geographic regions.

목차

1 Introduction

2 Dynamic and Spatial Model

3 Output Diffusion Model over Time and Space

4 Conclusions

키워드

Profit Maximization Output Diffusion Calculus of Variation Partial Differentiation Equation