is obviously of some importance since most government agencies operate
under imposed budget constraints, but we will not exhibit it here.
REFERENCES
Baumol, W., and Bradford, D., ``Optimal Departures from Marginal Cost Pricing,'' American
Economic Review, June 1970.
Boiteux, M., ``On the Management of Public Monopolies Subject to Budgetary Constraints,''
Journal of Economic Theory, September 1971 (translated from French in Econometrica,
January 1956).
Dreze, J., ``Some Post-War Contributions of French Economists to Theory and Public Policy,''
American Economic Review, June 1964 (suppl.).
``Postal Rate and Fee Increases,'' Docket No. R75±1; Docket No. R74±1.
Scott, Jr., F., ``Assessing USA Postal Ratemaking: An Application of Ramsey Prices,'' The
Journal of Industrial Economics, March 1986.
21. DECREASING COSTS AND THE THEORY OF SECOND-BESTÐTHE BOITEUX PROBLEM 691
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