In what follows we provide a conceptually correct procedure for determining whether a risky project passes the "potential Pareto improvement" welfare criterion which forms the normative basis of cost-benefit analysis. In this approach the role of secondary markets in providing opportunities for...

Recently, the Federal Trade Commission (FTC) has accused breakfast cereal manufacturers of illegal monopolization (1971).A major basis for the charge is the FTC belief that high advertising expenditures by the companies create effective entry barriers. One FTC study (1969) reached this...