Ramsey Pricing

Author(s):  
DIETER BÖS
Keyword(s):  
1992 ◽  
Vol 13 (2) ◽  
pp. 111-117 ◽  
Author(s):  
S. Keith Berry
Keyword(s):  

1992 ◽  
Vol 2 (4) ◽  
pp. 296-298 ◽  
Author(s):  
William G. Shepherd
Keyword(s):  

Econometrica ◽  
1991 ◽  
Vol 59 (1) ◽  
pp. 99 ◽  
Author(s):  
Egbert Dierker
Keyword(s):  

2009 ◽  
Vol 8 (2) ◽  
Author(s):  
Darryl Biggar

Why regulate natural monopolies? Conventional economic theory points to the price-marginal cost margin and the ensuing deadweight loss. But this hypothesis does a poor job of explaining the way that regulators behave in practice. This paper proposes an alternative hypothesis: that natural monopoly regulation exists to protect the sunk investments made by consumers of the regulated firm. This hypothesis explains many of the practices of regulators which make little or no sense under conventional economic theory, such as the desire to pursue stable prices, the aversion to Ramsey pricing, and the role of incremental cost as a pricing floor.


2010 ◽  
Vol 9 (3) ◽  
Author(s):  
T. Randolph Beard ◽  
George S. Ford ◽  
Lawrence J Spiwak

The FCC is currently considering whether it should adopt a uniform rate for pole attachment services for broadband services. Based on Ramsey pricing principles, we find that while historical differences in rates were sensible, technological convergence dictates that broadband providers should now pay a unified rate and that rate should be significantly lower than the rates currently applied.


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