A Geometric Treatment of Averch-Johnson's Behavior of the Firm Model: Comment/Reply
In his March 1970 article in this Review, F. E. Zajac provided a helpful and enlightening graphical exposition of the Averch-Johnson effect. Unfortunately he has made an error in claiming that maximizing the "reward to owners (stockholders)" leads to an indeterminate solution. The difficul...
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| Veröffentlicht in: | The American economic review 1972-03, Vol.62 (1), p.140 |
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| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
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| Online-Zugang: | Volltext |
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| Zusammenfassung: | In his March 1970 article in this Review, F. E. Zajac provided a helpful and enlightening graphical exposition of the Averch-Johnson effect. Unfortunately he has made an error in claiming that maximizing the "reward to owners (stockholders)" leads to an indeterminate solution. The difficulty lies with his interpretation of this goal. |
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| ISSN: | 0002-8282 1944-7981 |