[PEN-L:2434] Re: Economies of scale:

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

>I
> read once upon a time (in a book very far away) that the concept of "natural
> monopoly" was developed by a group of economists in the employ of the electric
> power industry -- perhaps in the direct pay of Insull himself.  Does anyone
> have the full story behind this -- who the economists were, how much they were
> paid, etc.?  References?
>
> Peter Dorman
>

I heard the same story, but I think it was from you, Peter.  I asked F.M.
Scherer about it.  He told me his uncle worked for Insull, but he knew
nothing about the economists being hired.
 --
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 916-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx