Ramsey Pricing in the Presence of Externality Costs

Ramsey Pricing in the Presence of Externality Costs

The authors derive the Ramsey pricing rule in the presence of externality costs. They find that it is based, not on social marginal costs, but on the sum of marginal private costs and a fraction of marginal externality costs. Thus the Ramsey quantity rule does not hold.

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Economies of Scale in Bus transport: I. Some British Municipal Results

This study was prompted by the proposal to merge a number of municipal transport undertakings into Passenger transport Authorities. The authors analyse figures showing various working expenses per bus-mile, and find no evidence of scale economies. They point out, however, that the P.T.A.s will be larger than any undertaking in their sample, and that a different conclusion might conceivably be reached if data were available on costs per passenger-mile. Extension of one-man operation appears to offer greater scope for economies than amalgamation.

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