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- W1580095095 abstract "We provide a continuum of subsidy rules based on a performance indicator that induce a monopoly to choose the socially optimal production level. These subsidy rules result in a reduction of the amount of subsidy paid to the monopolist compared to the standard case where a constant subsidy rate is used. The subsidy rate depends on a state variable that reflects the monopolist's history of performance. This variable depreciates over time, therefore requiring a permanent effort of the monopolist to maintain it at an optimal level. In an example with a linear demand and no production cost, the subsidy costs of inducing efficiency are reduced by almost fifty per cent. On montre qu'il existe un continuum de regles de subvention basees sur un indice de performance qui peuvent inciter un monopoleur a produire la quantite qui maximise le bien-etre social. Avec ces regles, le gouvernement paie un montant total qui est de beaucoup inferieur a celui qu'il devrait payer dans le cas standard d'un taux d'aide constante. Le taux de subvention variable depend de la valeur d'un stock qui reflete l'histoire de performance du monopoleur." @default.
- W1580095095 created "2016-06-24" @default.
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- W1580095095 date "2004-02-01" @default.
- W1580095095 modified "2023-09-27" @default.
- W1580095095 title "Designing a Performance Indicator to Economize on Monopoly Subsidy" @default.
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