Welfare Implications of Fully Distributed Cost Pricing Applied to Partially Regulated Firms

The profit-maximizing price structure of a multiproduct firm subject to fully distributed cost rules is considered. It is shown that a firm that sells in both regulated and unregulated markets would choose a dominated price vector. Similar incentives for inefficient pricing are provided to a firm that sells in markets subject to different regulatory authorities.

MoreLess

Year of publication:	1982
Authors:	Sweeney, George
Published in:	Bell Journal of Economics. - The RAND Corporation, ISSN 0361-915X. - Vol. 13.1982, 2, p. 525-533
Publisher:	The RAND Corporation

More details

Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005353648