Increasing Returns and Economic Efficiency

Front Matter....Pages i-xiii
Introduction....Pages 1-8
Devastating Implications of Increasing Returns on Some Traditional Conclusions....Pages 9-21
Equity and Efficiency versus Freedom and Fairness: An Inherent Conflict....Pages 22-39
Existence of Average-Cost Pricing Equilibria with Increasing Returns....Pages 40-45
The Efficiency of Encouraging Goods with High Degrees of Increasing Returns....Pages 46-54
Division of Labour: Increasing Returns at the Economy Level....Pages 55-75
The Smith Dilemma and Its Resolution....Pages 76-87
Why Should Governments Encourage Improvements on Infrastructure? Indirect Network Externality of Transaction Efficiency....Pages 88-100
Average-Cost Pricing, Increasing Returns, and Optimal Output: Comparing Home and Market Production....Pages 101-121
Do the Economies of Specialization Justify the Work Ethics? An Examination of Buchanan’s Hypothesis....Pages 122-153
Specialization, Trade, and Growth....Pages 154-168
Conceptual and Policy Implications: Concluding Discussion....Pages 169-176
Back Matter....Pages 177-200