02618cam a2200421 i 4500001001900000003000500019008004100024010001300065020002200078027002300100035002000123037001100143040001900154043001200173050002400185100003600209245013800245246008600383264003700469300004300506336002600549337002600575337002800601338003600629338002700665500001600692504004900708520102500757530005801782588004701840650006801887650004701955700003202002700003902034710002202073710004202095856005902137rnd000000000047115RAND920212s1981    caua   a b   b000 0 eng d  a81010713  a0833003321 (pbk.)  aRAND/R-2634-DOE/RC  a(Sirsi) a188080  c$23.00  aCstmoRcCstmoR  an-us--- 4aHD9560.6b.C29 19811 aCamm, Frank A.,d1949-eauthor.10aResource allocation under the COWPS price guideline :bthe case of fixed proportions /cFrank Camm, Charles E. Phelps, P. J. E. Stan.3 aResource allocation under the Council of Wage and Price Stability price guideline 1aSanta Monica, CA :bRAND,c1981.  axv, 45 pages :billustrations ;c28 cm  atextbtxt2rdacontent  acomputerbc2rdamedia  aunmediatedbn2rdamedia  aonline resourcebcr2rdacarrier  avolumebnc2rdacarrier  a"May 1981."  aIncludes bibliographical references (p. 45).  aEvidence points toward the Council of Wage and Price Stability (COWPS) price guidelines as the constraint causing U.S.  petroleum refinery shortages during 1979-1980.  This report develops the theory of a profit-maximizing firm's behavior when complying with a COWPS-like restraint.  Results include:  (1) When the production technology displays a certain type of fixed proportions (as appears relevant for refineries), shortages can--but need not--emerge.  (2) Product output decreases in response to the COWPS control, causing market prices to rise.  (3) Product supply diminishes as market demand increases.  (4) Use of some factors, e.g., crude oil, increases as factor prices increase, which, because of fixed proportions, implies expanded product output.  (5) Product mix likely shifts towards lower-grade products.  (6) Dispersion of product prices across firms increases.  (7) Relative product prices for a multiproduct firm become indeterminant.  Casual empirical evidence supports the relevance of this theory.  aAlso available on the internet via WWW in PDF format.  aDescription based on print version record. 0aPetroleum industry and tradexGovernment policyzUnited States. 0aPetroleum productsxPriceszUnited States.1 aPhelps, Charles E.eauthor.1 aStan, Peter J. E.,d1955-eauthor.2 aRand Corporation.1 aUnited States.bDepartment of Energy.41yOnline Accessuhttp://www.rand.org/pubs/reports/R2634/