Ramsey Pricing of Inputs with Downstream Monopoly Power and Regulation: Implications for Railroad Rate Setting
Henry B. McFarland
Abstract
Henry B. McFarland
Abstract
The rules of Ramsey pricing should be adjusted where the regulated firm is not selling to consumers or to perfectly competitive industries. Some rail charges should be below Ramsey prices.
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The rules of Ramsey pricing should be adjusted where the regulated firm is not selling to consumers or to perfectly competitive industries. Some rail charges should be below Ramsey prices.
Key concepts: Downstream (manufacturing), Monopoly, Economics, Microeconomics, Industrial organization, Business, Operations management