ABSTRACT

A comparison of the monopoly bureau's solution with the monopoly sponsor's solution indicates whether there exists a single determinate solution or a range of solutions within which the solution is indeterminate. The monopoly sponsor's solution is also necessary if later to develop the solution to the budget and output when a bureau is competing with another bureau or a competitive industry for the right to supply a specific service. Notice that the optimal distribution of the tax charges for this service is progressive relative to the level of the demand function for the service. The chapter develops the conditions for which the interests of the review committees differ from those of the bureau and those conditions for which they are consistent. It concludes that although the interests of the review committeee and the bureau are not identical, they are often consistent.