IDEAS home Printed from https://ideas.repec.org/a/emc/ecomex/v10y2001i1p107-119.html
   My bibliography  Save this article

The Secondary Market for Capacity in Natural Gas Transportation

Author

Listed:
  • Rigoberto Ariel Yépez

    (N/A)

Abstract

The purpose of this paper is to consider the problem of allocating the costs of a public facility with large fixed costs and increasing returns to scale. A particular case is considered for the natural gas transportation industry. A model for allocating capacity over time is considered. The approach is to find optimal pricing so that social welfare is maximized while the common facility is efficiently used. If individuals have property rights to the capacity of the common facility, the result of the analysis leads to the existence of market-clearing prices through a secondary market for the capacity of the common facility.

Suggested Citation

  • Rigoberto Ariel Yépez, 2001. "The Secondary Market for Capacity in Natural Gas Transportation," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(1), pages 107-119, January-J.
    • Handle: RePEc:emc:ecomex:v:10:y:2001:i:1:p:107-119
    as

    Download full text from publisher

    File URL: http://www.economiamexicana.cide.edu/num_anteriores/X-1/04_RIGOBERTO_ARIEL_107-119.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Edna Loehman & Andrew Whinston, 1971. "A New Theory of Pricing and Decision-Making for Public Investment," Bell Journal of Economics, The RAND Corporation, vol. 2(2), pages 606-625, Autumn.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Encaoua & Michel Moreaux, 1987. "L'analyse théorique des problèmes de tarification et d'allocation des coûts dans les télécommunications," Revue Économique, Programme National Persée, vol. 38(2), pages 375-414.
    2. Bara, Zoltán, 1998. "A tisztességes elosztás mikroökonómiai elmélete [The microeconomic theory of fair distribution]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 558-575.
    3. Edna T. Loehman, 2009. "Voluntary Cost-Sharing for Environmental Risk Reduction: A Pollution Abatement Case Study," Group Decision and Negotiation, Springer, vol. 18(4), pages 349-368, July.
    4. John G. Hof & Doug Rideout, 1993. "A Probabilistic Approach To Joint Cost Allocation in Public Projects," Public Finance Review, , vol. 21(4), pages 399-414, October.
    5. Danny Ben-Shahar & Yongheng Deng & Eyal Sulganik, 2006. "Shapley Cost Allocation Coincides with Relative Status: The Case of Skyscrapers," Working Paper 8567, USC Lusk Center for Real Estate.
    6. Mirucki, Jean, 1980. "Vérification des conditions d'efficacité dans la production chez Bell Canada [Checking the conditions of efficient production in Bell Canada]," MPRA Paper 30147, University Library of Munich, Germany, revised Jun 1980.
    7. Otero, Jesus & Waddams Price, Catherine, 2001. "Incumbent and entrant response to regulated competition: signaling with accounting costs and market prices2," Journal of Economics and Business, Elsevier, vol. 53(2-3), pages 209-223.
    8. Sandler, Todd & Tschirhart, John T, 1980. "The Economic Theory of Clubs: An Evaluative Survey," Journal of Economic Literature, American Economic Association, vol. 18(4), pages 1481-1521, December.
    9. Mirucki, Jean, 1980. "Comportement de l'entreprise réglementée: étude de l'hypothèse Averch-Johnson [Behavior of the Regulated Firm: A Study of the Averch-Johnson Hypothesis]," MPRA Paper 27669, University Library of Munich, Germany, revised 1982.
    10. E. Loehman & A. Whinston, 1974. "An Axiomatic Approach to Cost Allocation for Public Investment," Public Finance Review, , vol. 2(2), pages 236-250, April.
    11. Edna Tusak Loehman & Richard Kiser & Stephen J. Rassenti, 2014. "Cost Share Adjustment Processes for Cooperative Group Decisions About Shared Goods: A Design Approach," Group Decision and Negotiation, Springer, vol. 23(5), pages 1085-1126, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:emc:ecomex:v:10:y:2001:i:1:p:107-119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ricardo Tiscareño (email available below). General contact details of provider: https://edirc.repec.org/data/cideemx.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.