Ramsey pricing in a hierarchical structure with an application to network-access pricing

NCUIR > School of Management at National Central University > Graduate Institute of Industrial Economics > journal & Dissertation > Item 987654321/29568

Please use this identifier to cite or link to this item: http://ir.lib.ncu.edu.tw/handle/987654321/29568

Title:	Ramsey pricing in a hierarchical structure with an application to network-access pricing
Authors:	Chang,MC
Contributors:	產業經濟研究所
Keywords:	OPTIMAL TAXATION;COMPETITION;DISTANCE;GOODS
Date:	1996
Issue Date:	2010-06-29 20:31:31 (UTC+8)
Publisher:	中央大學
Abstract:	This paper studies a hierarchical structure where an upstream regulated industry sells an intermediate good to a downstream regulated industry. Some sufficient conditions for all Ramsey prices to exceed marginal costs are derived. This hierarchical structure is shown to decrease the profit margin of the intermediate good but preserve its sign. Further, the hierarchical structure also decreases the profit margin of the final good sold by the downstream regulated industry. This is because this final good is a ''hierarchical complement'' to the intermediate good sold by the upstream regulated industry. The impacts upon other publicly produced goods, however, could be said to be neutral. Therefore, the hierarchical structure has asymmetric impacts upon publicly produced goods. Accordingly, the equiproportional output-reduction statement of Ramsey rule does not survive. This paper ends with providing an application to the network-access pricing problem.
Relation:	JOURNAL OF ECONOMICS-ZEITSCHRIFT FUR NATIONALOKONOMIE
Appears in Collections:	[Graduate Institute of Industrial Economics] journal & Dissertation

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