A Note on Non-Discriminatory Access to Railroad Infrastructure
AbstractThe 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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Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0303004.
Length: 20 pages
Date of creation: 17 Mar 2003
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rail; restructuring; vertical separation; access charge; discrimination; Russia;
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)
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