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Estimating economies of scope using the profit function: A dual approach for the normalized quadratic profit function

Zhifeng Gao and Allen Featherstone

Economics Letters, 2008, vol. 100, issue 3, 418-421

Abstract: Theoretical relationships between parameters of the normalized quadratic profit and cost functions are derived allowing for economies of scope to be calculated using profit function estimates. An empirical example confirms that the cost function is recovered using the estimated profit function.

Date: 2008
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Working Paper: Estimating Economies of Scope Using Profit Function: A Dual Approach of the Normalized Quadratic Profit Function (2006) Downloads
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