This would have infra- and extramarginal
benefits: existing telephone consumers would benefit from a much larger network, and potential consumers would be induced to join the network.
However, there were two distinct sources of efficiency losses: (1) behavioral imperfections, such as trading by extramarginal
players, overinsurance, and underinsurance and (2) efficiency distortions due to health insurance regulations.
According to Gudelis (1963), marginal glacial formations are divided into frontal, intramarginal, and extramarginal
"Do Hostile Takeovers Reduce Extramarginal
Wage Payments?" Review of Economics and Statistics, 77(3), 1995, 470-85.
The traditional static analysis of food stamps emphasizes the distinction between those households who spend some of their own cash income on groceries (inframarginal households) and those who rely on food stamps alone to meet their grocery bill (extramarginal
Because these cards represent extramarginal
units, this does not change the equilibrium price in either market.
In two studies, I explore the joint hypothesis that hostile takeovers target older workers' wages which exceed their productivity, and that these "extramarginal
" wage payments exist.(6) In one of the studies - the one with superior data - I find that older workers are paid more than their marginal product, consistent with Lazear's model, and that hostile takeovers target these excess payments.
Some observers have also argued that takeovers are driven by the opportunity to expropriate extramarginal
More relevant to the central concern of Shleifer and Summers's analysis, Neumark and Sharpe (1993) found little support for the hypothesis that hostile takeovers transfer wealth from workers to shareholders by reducing extramarginal
(It is easy to enforce restrictions of all harvests on extramarginal
lands by simply closing these lands to all harvests.