Marginal cost pricing tests for predation: Naive welfare economics and public policy

1981 ◽  
Vol 26 (4) ◽  
pp. 769-814
Author(s):  
Joel B. Dirlam
2020 ◽  
Vol 35 (2) ◽  
pp. 181-203 ◽  
Author(s):  
Alain Marciano

The purpose of this article analyze the process that led Buchanan to become a ‘Wicksellian’, that is, to recognise the importance of Finanztheoretische Untersuchungen. It is now established that Buchanan discovered Wicksell’s Finanztheoretische Untersuchungen not after he had completed his PhD dissertation – as he himself recounted – but before. We show that, if the process did indeed start with the dissertation, Wicksell remained marginal for Buchanan until he had read Nancy Ruggles’s articles on welfare economics and marginal cost pricing. This led him to start translating Wicksell’s book. Then, we discuss the role of the correspondence that Buchanan exchanged with Carl Uhr. Ruggles and Uhr played an important role in Buchanan’s acceptance that Finanztheoretische Untersuchungen was an important book.


Author(s):  
Paolo Delle Site

For networks with human-driven vehicles (HDVs) only, pricing with arc-specific tolls has been proposed to achieve minimization of travel times in a decentralized way. However, the policy is hardly feasible from a technical viewpoint without connectivity. Therefore, for networks with mixed traffic of HDVs and connected and autonomous vehicles (CAVs), this paper considers pricing in a scenario where only CAVs are charged. In contrast to HDVs, CAVs can be managed as individual vehicles or as a fleet. In the latter case, CAVs can be routed to minimize the travel time of the fleet of CAVs or that of the entire fleet of HDVs and CAVs. We have a selfish user behavior in the first case, a private monopolist behavior in the second, a social planner behavior in the third. Pricing achieves in a decentralized way the social planner optimum. Tolls are not unique and can take both positive and negative values. Marginal cost pricing is one solution. The valid toll set is provided, and tolls are then computed according to two schemes: one with positive tolls only and minimum toll expenditure, and one with both tolls and subsidies and zero net expenditure. Convergent algorithms are used for the mixed-behavior equilibrium (simplicial decomposition algorithm) and toll determination (cutting plane algorithm). The computational experience with three networks: a two-arc network representative of the classic town bypass case, the Nguyen-Dupuis network, and the Anaheim network, provides useful policy insight.


2014 ◽  
pp. 131-151
Author(s):  
Nuno Luis Madureira

1985 ◽  
Vol 26 (2) ◽  
pp. 135-146 ◽  
Author(s):  
Xavier Freixas ◽  
Jean-Jacques Laffont

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