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Author Miller, William C.
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Ramsey Pricing ♦ Long Run Competition ♦ Regulated Firm Service ♦ Limited Demand Elasticity Data ♦ Long Run ♦ Simple Inverse Elasticity Rule ♦ Regulated Firm ♦ Zero Profit ♦ Stringent Informational Requirement ♦ Competitive Sector ♦ Constant Price
Abstract Ramsey pricing of regulated firm services is often considered impractical because of stringent informational requirements. However in cases where demands for regulated firm services are independent and a marginal cost pricing competitive fringe exists, the simple inverse elasticity rule for Ramsey pricing has been shown to apply. This paper extends this result to show that only limited demand elasticity data for the regulated firm is required to apply the same rule, more generally, when zero profits and constant prices exist in the competitive sector in the long run.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article