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The anomalous inverse concentration-price relationship observed by some researchers in the newspaper market has been attributed to scale economies. In this paper we suggest that the newspaper's (or magazine's) double-product feature (i.e., news supplied to readers and advertising space supplied to advertisers) is the main source of this anomaly. In a simple oligopoly model it is shown how a profit-maximizing publisher takes advantage of that feature. Empirically an inverse concentration-price relationship may arise if double-product pricing is not controlled for. Regression results for a cross-section of 222 German Newspapers and magazines corroborate the theoretical implications.

A THEORETICAL ANALYSIS OF "OPTIMAL" (NASH EQUILIBRIUM) TARIFF RATES IS PRESENTED. A NUMERICAL GENERAL EQUILIBRIUM MODEL IS THEN USED TO FIND NASH EQUILIBRIUM TARIFF RATES FOR THE UNITED STATES AND CANADA. THE NASH EQUILIBRIUM TARIFFS ARE SMALL RELATIVE TO PARTIAL EQUILIBRIUM ESTIMATES: 18 PERCENT FOR THE UNITED STATES AND 6 PERCENT FOR CANADA. THE UNITED STATES IS ESSENTIALLY INDIFFERENT BETWEEN THE NASH EQUILIBRIUM AND FREE TRADE, WHILE CANADA IS BETTER OFF AT THE LATTER BY $4 BILLION. EMPIRICAL RESULTS SUPPORT THEORETICAL PREDICTIONS THAT THE OPTIMAL TARIFF IS SMALLER WHEN THE COUNTRY IS SMALLER, THERE ARE SCALE ECONOMICS AND FREE ENTRY, AND CAPITAL IS INTERNATIONALLY MOBILE.

THE AUTHORS ESTIMATE ECONOMICS OF SCALE FOR U.S. FIRMS PRODUCING ELECTRIC POWER. CROSS-SECTION DATA FOR 1955 AND 1970 ARE ANALYZED USING THE TRANSLOG COST FUNCTION. THEY FIND THAT IN 1955 THERE WERE SIGNIFICANT SCALE ECONOMICS AVAILABLE TO NEARLY ALL FIRMS. THE AUTHORS CONCLUDE THAT POLICIES DESIGNED TO PROMOTE COMPETITION CANNOT BE FAULTED IN TERMS OF SACRIFICING ECONOMICS OF SCALE.

Includes bibliographical references (leaves 88-105) ; Explores issues and concepts related to the economic viability of small-scale political institutions, reviews surveys of "decentralization experiments," and considers the potential for small-scale (neighborhood) government to play an ecocomically useful role in providing neighborhood-based health care service delivery.