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- W373955215 abstract "This chapter discusses a set of axioms for prices to achieve a fair allocation of costs. The most important feature of cost-axiomatic pricing is that it starts from axioms on the relation between prices and cost functions and, hence, needs no information on consumer tastes. However, it is not a priori guaranteed that the application of such price schedules can always imply a general equilibrium. If an equilibrium under cost-axiomatic prices is to obtain, the estimation of private tastes enters again. The same price can be charged for goods that have the same influence on costs. The price should be independent of the unit's measurement. If the cost function can be broken into sub-costs, the prices are found by adding the prices determined by the sub-costs. The price of a commodity, the production of which requires investment, is not negative. Cost-axiomatic prices and welfare-maximizing prices include marginal-cost prices and cost-covering prices as special cases. All cost-axiomatic prices are demand-compatible if the financing of deficits of public utilities is included in an equilibrium approach." @default.
- W373955215 created "2016-06-24" @default.
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- W373955215 date "1994-01-01" @default.
- W373955215 modified "2023-09-25" @default.
- W373955215 title "A Set of Axioms for Prices to Achieve a Fair Allocation of Costs" @default.
- W373955215 doi "https://doi.org/10.1016/b978-0-444-88478-7.50031-4" @default.
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