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Article: The Assembly of Rents

TitleThe Assembly of Rents
Authors
Issue Date2016
PublisherWalter de Gruyter GmbH. The Journal's web site is located at http://www.degruyter.com/view/j/me
Citation
Man and the Economy, 2016, v. 3 n. 1, p. 97-104 How to Cite?
AbstractThere are fixed costs in production. One has to assemble rents earned in production lines to cover them. There are also fixed costs in consumption. Consumers assemble surpluses to cover them. In either case, rent assemblage could either be a quantity solution, a quality solution, or a combination of both. Once a fixed cost is committed by contract, it becomes historical. Yet compared to the option of paying this fixed cost all over again, increasing those quantities or qualities, which do not further increase this fixed cost, is less costly. The Law of Demand therefore implies the quality and/or the quantity solutions. The quality solution, as provided by the Alchian-Allen Theorem, is but a special case: where an increase in quality is the only viable solution under some specific real world constraints.
Persistent Identifierhttp://hdl.handle.net/10722/234790
ISSN

 

DC FieldValueLanguage
dc.contributor.authorWong, KC-
dc.date.accessioned2016-10-14T13:49:16Z-
dc.date.available2016-10-14T13:49:16Z-
dc.date.issued2016-
dc.identifier.citationMan and the Economy, 2016, v. 3 n. 1, p. 97-104-
dc.identifier.issn2196-9639-
dc.identifier.urihttp://hdl.handle.net/10722/234790-
dc.description.abstractThere are fixed costs in production. One has to assemble rents earned in production lines to cover them. There are also fixed costs in consumption. Consumers assemble surpluses to cover them. In either case, rent assemblage could either be a quantity solution, a quality solution, or a combination of both. Once a fixed cost is committed by contract, it becomes historical. Yet compared to the option of paying this fixed cost all over again, increasing those quantities or qualities, which do not further increase this fixed cost, is less costly. The Law of Demand therefore implies the quality and/or the quantity solutions. The quality solution, as provided by the Alchian-Allen Theorem, is but a special case: where an increase in quality is the only viable solution under some specific real world constraints.-
dc.languageeng-
dc.publisherWalter de Gruyter GmbH. The Journal's web site is located at http://www.degruyter.com/view/j/me-
dc.relation.ispartofMan and the Economy-
dc.rightsThe final publication is available at www.degruyter.com-
dc.titleThe Assembly of Rents -
dc.typeArticle-
dc.identifier.emailWong, KC: wongkc@hku.hk-
dc.identifier.authorityWong, KC=rp01027-
dc.identifier.doi10.1515/me-2016-0014-
dc.identifier.hkuros270111-
dc.identifier.volume3-
dc.identifier.issue1-
dc.identifier.spage97-
dc.identifier.epage104-
dc.publisher.placeGermany-

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