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- W652095102 abstract "This chapter describes optimal pricing of publicly supplied intermediate goods. Intermediate goods are not bought by consumers, but by firms as inputs of their production. Public utilities quite often sell both consumer goods and intermediate goods. Telephone calls, gas, electricity, and transportation services are demanded both by private and by business customers. In principle, public-sector pricing of intermediate goods is fully included in the basic model. Any one of the prices P k could be the price of some good that is sold only to enterprises and not to consumers. The price of such an intermediate good, in the basic model, would not influence welfare in the usual direct way. Intermediate goods are not arguments of the individual direct utility functions. Intermediate-good pricing might, however, influence welfare in one of the following two ways. First, because of cross-subsidization; higher rates for business may be used to lower rates for consumers. Second, there is a snowball-effect of intermediate-good pricing." @default.
- W652095102 created "2016-06-24" @default.
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- W652095102 date "1994-01-01" @default.
- W652095102 modified "2023-09-27" @default.
- W652095102 title "Optimal Pricing of Publicly Supplied Intermediate Goods" @default.
- W652095102 doi "https://doi.org/10.1016/b978-0-444-88478-7.50018-1" @default.
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