Construct · 1 fields · 1 citations

averch-johnson effect: a standalone construct

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Industrial organization

the tendency of firms under rate-of-return regulation to use more capital than cost minimization would call for.

In industrial organization, averch-johnson effect refers to the tendency of firms under rate-of-return regulation to use more capital than cost minimization would call for. This meaning comes from Averch (1962) in Behavior of the Firm Subject to External Regulatory Constraint.[1]

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Nearby constructs

business1 fields · 1 citationsanchor · a standalone construct capital2 fields · 3 citationsjingle · one word, two constructs cost4 fields · 4 citationsjingle · one word, four constructs

References

Averch, H., & Johnson, L. (1962). Behavior of the Firm Subject to External Regulatory Constraint. RAND Corporation. https://doi.org/10.7249/p2488-1

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