Tighter Price Cap Regulation on Consumer Surplus and Utility
Kang, Weisman, and Zhang (2000) demonstrated that, under a tighter price cap, consumer welfare increases with the independence of demands. Conversely, the tighter price cap may negatively impact consumer welfare in situations involving interdependent demands. This paper identifies an overlooked property of Kang et al. (2000), namely, that the cross-price effects should be symmetrical without an income effect and demand functions of a Hicksian type. This paper reveals the invariant conclusion that consumers always benefit from a tighter price cap. Besides, it further derives the effects of the tighter price cap on consumer utility, and concludes that the net price elasticity of demand is the key to the effect of the average revenue constraint.
Tighter Average Revenue Regulation Can Reduce Consumer Welfare
A monopolist producing for two markets is subject to an average revenue constraint, a form of regulation which is relevant to some U.K. utilities. Where marginal costs of serving the two markets differ, tighter regulation may cause one of the prices to rise as shown by I. Bradley and C. Price (1988). A simple linear example demonstrates that total consumer surplus may fall as regulation becomes more stringent. Copyright 1995 by Blackwell Publishing Ltd.
New approach to vision-based BGA package inspection
Ball grid array (BGA) techniques have developed very fast due to the advantages of more I/O ports, small size, and so on. In this paper, a vision-based algorithm for BGA package inspection is proposed to accurately estimate center and diameters of solder-balls of BGA packages, so that defects of BGA packages, such as missing or extra balls, oversize or undersize balls, over-height or under-height balls, and pitch can be detected for ensuring the quality of BGA packages.