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Special interest groups and 4th best transport pricing

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  • Wieland, Bernhard

Abstract

This paper is organized as follows. In order to explain the basic idea of 4th best pricing more fully the following Section 2 will sketch and discuss the above mentioned Laffont model, where it is shown that under certain conditions a uniform tariff may be preferable to an optional tariff because such a uniform tariff is less amenable to the influence of interest groups. Section 3 will illustrate Laffont?s insight with several examples from the transport sector. Section 4 will conclude.

Suggested Citation

  • Wieland, Bernhard, 2006. "Special interest groups and 4th best transport pricing," Discussion Papers 1/2006, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
  • Handle: RePEc:zbw:tudiwv:12006
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    1. Gasmi, F. & Laffont, J. J. & Sharkey, W. W., 2000. "Competition, universal service and telecommunications policy in developing countries," Information Economics and Policy, Elsevier, vol. 12(3), pages 221-248, September.
    2. Rothengatter, Werner, 2003. "How good is first best? Marginal cost and other pricing principles for user charging in transport," Transport Policy, Elsevier, vol. 10(2), pages 121-130, April.
    3. Theodore Keeler, 1984. "Theories of regulation and the deregulation movement," Public Choice, Springer, vol. 44(1), pages 103-145, January.
    4. Schade, Jens & Schlag, Bernhard, 2000. "Acceptability of Urban Transport Pricing," Research Reports 72, VATT Institute for Economic Research.
    5. James Konow, 2003. "Which Is the Fairest One of All? A Positive Analysis of Justice Theories," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1188-1239, December.
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