By Julio Segura, Carlos Rodriguez Braun

An Eponymous Dictionary of Economics is an interesting and available reference paintings with finished insurance of the sphere of economics from Adam Smith's challenge via Minkowski's Theorem to Zellner's Estimator. Eponymy - the perform of affixing the identify of the scientist to all or a part of what he/she has discovered - has many fascinating beneficial properties yet just a only a few makes an attempt were made to take on the topic lexicographically in technology and paintings. this can be the 1st eponymous dictionary of economics ever released in any language. There are countless numbers of eponyms and the common economist will likely be conversant in, not to mention be capable to grasp, a comparatively constrained variety of them. The Dictionary fills this void in a attainable quantity that describes all proper fiscal eponyms. a few infrequent yet fascinating eponyms also are integrated, many entries are cross-referenced and all have a succinct bibliography for additional studying. Julio Segura and Carlos Rodriguez Braun have assembled a different Dictionary that might be a useful and masses welcomed reference publication for fiscal newshounds, economists and monetary students in any respect degrees of academe, and in all parts of economics and its linked fields.

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**Extra info for An Eponymous Dictionary Of Economics: A Guide To Laws And Theorems Named After Economists (Elgar Original Reference)**

**Example text**

Hence there is at least one consumer for which the value of consumption at the rearrangement is not higher than income at equilibrium. Because the equilibrium consumption for this consumer is no worse than any other affordable consumption we conclude that the rearrangement is not an improvement for her. Under convexity assumptions there is a converse result, known as the second welfare theorem: every Pareto optimum can be sustained as a competitive equilibrium after a lump-sum transfer of income.

Finally, administrative and legal authorizations can also impose a different cost on new entrants vis-à-vis the incumbent monopolies. In all these cases, eliminating the control of monopoly prices will not lead to efficiency prices. Actually the overwhelming presence of economical, technical and legal barriers to entry in industries formerly organized as monopolies, such as power, natural gas, water or telecommunications, makes almost ineffective the application of the theory of contestable markets to regulatory action in order to suppress price controls.

Otherwise the monopoly would put in danger its continuity as the only firm in the market. In the case where the monopolist chose to raise prices and to obtain extraordinary profits, other investors or firms would consider entering the market to capture all or part of the profits. Under the threat of such a contest, the monopolist prefers to maintain prices close to costs, renouncing extraordinary benefits, but ensuring its permanence as a monopoly without competitors. The consequence of the theory of contestable markets is that regulating by ignoring control of prices and attending only to the raising of all the barriers to entry is effective in achieving efficiency prices.