IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v6y1978i4p503-511.html
   My bibliography  Save this article

A Note on the Efficient Pricing of Public Goods

Author

Listed:
  • Dwight R. Lee

    (University of Colorado)

Abstract

It has been concluded by some that no positive price for a public good is con-sistent with consumption efficiency as it will discourage consumption that could be provided at zero cost. It is argued here that this conclusion is m error because it fails to distinguish between two distinct components ofpublic good consumption: (1) the quantity of the good made available, and (2) the duration of the use of what is available. By developing a model which explicitly considers these two components of consumption it is shown that a pattern of positive "entry" prices exists which will motivate efficiency in both the consumption and provision of a public good.

Suggested Citation

  • Dwight R. Lee, 1978. "A Note on the Efficient Pricing of Public Goods," Public Finance Review, , vol. 6(4), pages 503-511, October.
    • Handle: RePEc:sae:pubfin:v:6:y:1978:i:4:p:503-511
    DOI: 10.1177/109114217800600408
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114217800600408
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114217800600408?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter O. Steiner, 1957. "Peak Loads and Efficient Pricing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 71(4), pages 585-610.
    2. Burton A. Weisbrod, 1964. "Collective-Consumption Services of Individual-Consumption Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 78(3), pages 471-477.
    3. Demsetz, Harold, 1970. "The Private Production of Public Goods," Journal of Law and Economics, University of Chicago Press, vol. 13(2), pages 293-306, October.
    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. Jackie Krafft & Isabelle Nicolaï, 1995. "Commitment Procedures In R&D Investments : An Examination Of Different Varieties," Post-Print hal-01799270, HAL.
    2. Joe R. Hulett & Robert B. Eke Lund Jr. & W. Mark Crain, 1976. "The Private Provision of Public Goods: A Note on the Demsetz Model," Public Finance Review, , vol. 4(1), pages 45-55, January.
    3. Haldrup, Niels & Nielsen, Morten Orregaard, 2006. "A regime switching long memory model for electricity prices," Journal of Econometrics, Elsevier, vol. 135(1-2), pages 349-376.
    4. Claire M. Weiller & Michael G. Pollitt, 2013. "Platform markets and energy services," Working Papers EPRG 1334, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    5. Gert Brunekreeft & David Newbery, 2006. "Should merchant transmission investment be subject to a must-offer provision?," Journal of Regulatory Economics, Springer, vol. 30(3), pages 233-260, November.
    6. Endres, Alfred, 1978. "Fraudulence and the competitive supply of public goods," Discussion Papers, Series B 1, University of Konstanz, Department of Economics.
    7. Byron B. Carson, 2022. "Individuals and Externalities in Economic Epidemiology: A Tension and Synthesis," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 37(Fall 2022), pages 1-24.
    8. Grimm, Veronika & Schewe, Lars & Schmidt, Martin & Zöttl, Gregor, 2017. "Uniqueness of market equilibrium on a network: A peak-load pricing approach," European Journal of Operational Research, Elsevier, vol. 261(3), pages 971-983.
    9. van den Bergh, Jeroen C.J.M., 2008. "Optimal diversity: Increasing returns versus recombinant innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 565-580, December.
    10. Lorenzo Rocco, 2002. "Pricing of an Endogenous Peak-Load," Working Papers 54, University of Milano-Bicocca, Department of Economics, revised Aug 2002.
    11. Ryan, Mandy, 1998. "Valuing psychological factors in the provision of assisted reproductive techniques using the economic instrument of willingness to pay," Journal of Economic Psychology, Elsevier, vol. 19(2), pages 179-204, April.
    12. Hines Jr., James R., 2000. "What is benefit taxation?," Journal of Public Economics, Elsevier, vol. 75(3), pages 483-492, March.
    13. Hummel Jeffrey Rogers & Lavoie Don, 1994. "National Defense And The Public-Goods Problem," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 5(2-3), pages 1-26, June.
    14. Chun-Chu Yeh & Cheng-Shen Lin & Chin-Huang Huang, 2018. "The Total Economic Value of Sport Tourism in Belt and Road Development—An Environmental Perspective," Sustainability, MDPI, vol. 10(4), pages 1-14, April.
    15. Mark Koyama, 2012. "Prosecution Associations in Industrial Revolution England: Private Providers of Public Goods?," The Journal of Legal Studies, University of Chicago Press, vol. 41(1), pages 95-130.
    16. Coggins, Jay S. & Ramezani, Cyrus A., 1998. "An Arbitrage-Free Approach to Quasi-Option Value," Journal of Environmental Economics and Management, Elsevier, vol. 35(2), pages 103-125, March.
    17. Ghazala Mansuri, 2004. "Community-Based and -Driven Development: A Critical Review," The World Bank Research Observer, World Bank, vol. 19(1), pages 1-39.
    18. Schröder Guido, 2006. "Preise auf Grenzkostenniveau – optimal, aber unmöglich? / Prices at Marginal Cost Level – Optimal, but Impossible?: Angebotsseitige Subadditivität und nachfrageseitige Nicht-Rivalität als die zwei Sei," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 57(1), pages 209-240, January.
    19. Vesterberg, Mattias, 2016. "The hourly income elasticity of electricity," Energy Economics, Elsevier, vol. 59(C), pages 188-197.
    20. Mark Koyama, 2014. "The law & economics of private prosecutions in industrial revolution England," Public Choice, Springer, vol. 159(1), pages 277-298, April.

    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:sae:pubfin:v:6:y:1978:i:4:p:503-511. 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: SAGE Publications (email available below). General contact details of provider: .

    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.