Philosophy Dictionary of ArgumentsHome
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| Subadditivity: In mathematics, subadditivity is a property of a function that states that the value of the function evaluated at the sum of two arguments is less than or equal to the sum of the values of the function evaluated at each argument individually._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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William J. Baumol on Subadditivity - Dictionary of Arguments
Mause I 162f Subadditivity/Baumol: in the context that certain goods are indivisible (such as machines), the principle of subadditivity (1) plays a role: a cost function is subadditive when the sum of the production costs of all subsets of a good is higher than when the total quantity is produced by a single supplier. A known special case of subadditivity are increasing economies of scale, which means that a proportional increase in the use of all production factors (level variation) leads to a disproportionate increase in production results. For the opposite development see also Natural Monopolies/Neoclassicism. Fixed cost degression: the costs of an increase in capacity are spread over a larger production volume. Material costs: increase only under-proportionally. 1. W. J. Baumol, J. C. Panzar, R. D. Willig, Contestable markets and the theory of industry structure. New York 1982._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
EconBaum I William J. Baumol John C. Panzar Robert D. Willig, Contestable markets and the theory of industry structure New York 1982 EconBaum II William J. Baumol David F. Bradford Optimal departures from marginal cost pricing 1970 Mause I Karsten Mause Christian Müller Klaus Schubert, Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018 |
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> Counter arguments against Baumol
> Counter arguments in relation to Subadditivity
Ed. Martin Schulz, access date 2024-04-25