A Note on Non-Discriminatory Access to Railroad Infrastructure

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A Note on Non-Discriminatory Access to Railroad Infrastructure

Author Info

Russell Pittman (U.S. Department of Justice Antitrust Division)

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Russell Pittman

Abstract

The setting of user prices for enterprises with large fixed costs and marginal costs below average costs – “natural monopolies” – raises important policy questions regarding both efficiency and equity. It has become well accepted among economists that, in a variety of settings, welfare may be improved if such prices are set using systems that are non-linear or discriminatory – for example, two-part tariffs and Ramsey pricing. If these pricing schemes are ruled out, the principal alternatives are large government subsidies and the inefficiencies of fully allocated cost pricing. Why should the setting of access prices be any different?

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Paper provided by EconWPA in its series Industrial Organization with number 0303004.

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Length: 20 pages
Date of creation: 17 Mar 2003
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Handle: RePEc:wpa:wuwpio:0303004

Note: Type of Document - ; prepared on PC; pages: 20 ; figures: 2 Figures included
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Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
H2 - Public Economics - - Taxation, Subsidies, and Revenue
L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

This paper has been announced in the following NEP Reports:

NEP-ALL-2003-03-25 (All new papers)

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Antonio Estache & Andrea Goldstein & Russell Pittman, 2001. "Privatization and Regulatory Reform in Brazil: The Case of Freight Railways," Development and Comp Systems 0111001, EconWPA. [Downloadable!]
Other versions:
- Estache, A. & Goldstein, A. & Pittman, R., 2000. "Privatization and Regulatory Reform in Brazil: The Case of Freight Railways," Papers 00-5, U.S. Department of Justice - Antitrust Division.
Baumol, William J & Bradford, David F, 1970. "Optimal Departures from Marginal Cost Pricing," American Economic Review, American Economic Association, vol. 60(3), pages 265-83, June. [Downloadable!] (restricted)
Philippe Gagnepain & Marc Ivaldi, 2002. "Incentive Regulatory Policies: The Case of Public Transit Systems in France," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 605-629, Winter.
Other versions:
- Gagnepain, Philippe & Ivaldi, Marc, 1999. "Incentive Regulatory Policies: The Case of Public Transit Systems in France," IDEI Working Papers 84, Institut d'Économie Industrielle (IDEI), Toulouse. [Downloadable!]
- Gagnepain, P. & Ivaldi, M., 1999. "Incentive Regulatory Policies: the Case of Public Transit Systems in France," Papers 99.515, Toulouse - GREMAQ.
Friedlaender, Ann F & Spady, Richard H, 1980. "A Derived Demand Function for Freight Transportation," The Review of Economics and Statistics, MIT Press, vol. 62(3), pages 432-41, August. [Downloadable!] (restricted)

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