[PEN-L:2438] Re: Economies of scale:

[mmeeropo@xxxxxxxxxxxxxxxxxxxxx (Mike Meeropol)]

Peter.Dorman wrote:
>
> I don't know about the first use of "economies of scale" in economic theory
> (it plays a very important role in Marshall), but I have a related request:  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
>
And while we're at it, wasnt' the concept of "contestable markets" developed
by W. Baumol when he was hired as an expert witness for AT and T to help
them defend against the Antitrust Suit over a decade ago?

Both pieces of intellectual history would be intersting to know!  CHeers,
Mike

--
Mike Meeropol
Economics Department
Cultures Past and Present Program
Western New England College
Springfield, Massachusetts
"Don't blame us, we voted for George McGovern!"
Unrepentent Leftist!!
mmeeropo@xxxxxxxx
[if at bitnet node:  in%"mmeeropo@xxxxxxxx" but that's fading fast!]