THE LONG-RUN EFFICIENCY OF BLOCK-RATE PRICING

It is widely believed that block-rate pricing separates income redistribution from efficiency consideration. We show that social optimum can not be implementable by block-rate pricing. Particularly, block-rate pricing with marginal cost as the highest block induces over production and utilization of resources, too-small firm size, and welfare losses.

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Year of publication:	1998
Authors:	Ziv, Bar-Shira ; Finkelshtain, Israel
Institutions:	Agricultural and Applied Economics Association - AAEA
Subject:	Demand and Price Analysis \| Industrial Organization \| Institutional and Behavioral Economics

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Extent:	application/pdf
Series:	1998 Annual meeting, August 2-5, Salt Lake City, UT.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 1998 Annual meeting, August 2-5, Salt Lake City, UT Number 20948
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005503210