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| Marvin Kraus |
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| ''A generalized envelope theorem with an application to congestion-prone facilities'' |
| ( 2002, Vol. 3 No.28 ) |
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| A generalized envelope theorem is presented which has the Envelope Theorem as a special case. Relative to the Envelope Theorem, it provides greater flexibility in determining the rate of change of a value function with respect to one of its arguments. We revisit a classic result on economies of scale for a congestion-prone facility, using the flexibility of the Generalized Envelope Theorem to provide a simpler, more intuitive proof. |
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| Keywords: congestible facilities |
JEL: C6 - Mathematical Methods and Programming: General
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| Manuscript Received : Dec 04 2002 | | Manuscript Accepted : Dec 04 2002 |
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