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A Dynamic Analysis of Second-Best Pricing

In: Public Sector Economics

Author

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  • Ronald R. Braeutigam

Abstract

The theory of second best for multiproduct firms has received much attention in the literature of economics over the past twenty-five years. Both regulators and economists have recognized that departures from marginal cost pricing will be necessary when there are economies of scale if the firm is to break even in the absence of nonlinear pricing schemes and direct subsidies to the firm.

Suggested Citation

  • Ronald R. Braeutigam, 1983. "A Dynamic Analysis of Second-Best Pricing," Palgrave Macmillan Books, in: Jörg Finsinger (ed.), Public Sector Economics, chapter 6, pages 103-116, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-06504-2_6
    DOI: 10.1007/978-1-349-06504-2_6
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    Cited by:

    1. María Angeles García Valiñas, 2004. "Eficiencia y equidad en el diseño de precios óptimos para bienes y servicios públicos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 168(1), pages 95-119, march.

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