X-Efficiency: Blogging Will be VERY Light in the Next 6 Weeks!!

Tuesday, July 18, 2006

Blogging Will be VERY Light in the Next 6 Weeks!!

I won't be blogging much in the next little while. Probably will resume active blogging until some time in September - unless I see something really worthwhile to post.

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"A monopolist may be X-inefficient either because it does not have an incentive to be more efficient due to lack of competition or it does not have the opportunity to observe and learn from other more efficient firms in the industry. In an industry high profits may imply high prices due to x-inefficiency. However, excess profits do not necessarily mean that consumers are paying higher prices. And, lack of excess profit does not necessarily indicate competition or cost efficiency." Leibenstein, Harvey. 1966. "Allocative Efficiency vs. 'X-Efficiency'," American Economic Review 56, (June), pp. 392-415