Cost and Production Duality: The Case of the Regulated Firm

• Published in: Journal of productivity analysis Vol. 16; no. 3; pp. 203 - 224
• Main Authors: OUELLETTE, PIERRE, VIGEANT, STÉPHANE
• Format: Journal Article
• Language: English
• Published: Norwell Kluwer Academic Publishers 01.11.2001; Springer Nature B.V
• Subjects: Aviation regulation; Best available technology; Commercial regulation; Cost functions; Economic regulation; Economists; Financial investments; Industrial regulation; Investment return rates; Mathematical models; Minimization of cost; Optimization; Price regulations; Production functions; Regulated industries; Regulation; Studies

This paper examines a generalization of cost-production duality for regulated firms. It derives an equivalency between the production function and conditional factor demands for the case where the firm's optimization problem is subject to a set of additional (regulatory) constraints. This proce...