Pricing Policies For Public Enterprises

This clear, precisely written text presents an important branch of the modern, micro-economically based theory of industrial organization and of public finance, utilizing calculus only. Answers are provided to some pertinent economic questions, such as the pricing policies of vote-seeking politicians, of empire-building bureaucrats and of out-put-maximizing and energy-saving public utilities. These policies are compared with the welfare economic benchmark rules e.g. on marginal cost pricing and Ramsey pricing. Great significance is attached to price regulation. The book elucidates the recent replacement of rate of return regulation by price-cap regulation. It also explains why many simple rules like yardstick regulation fail to achieve optimal prices, which shows how complicated it is to induce managers to truthfully reveal their private information. How this can be achieved properly is shown in various principal-agent models on regulation with uncertain costs, uncertain demand and with soft budget constraints.

Advanced Textbooks in Economics, Volume 23: Public Enterprise Economics: Theory and Application focuses on economics, mathematical economics, and econometrics, including microeconomics, marginal-cost pricing, taxes, and income effects. The manuscript takes a look at the essential parts of public sector pricing models, normative optimum theory, and normative piecemeal theory. Discussions focus on welfare improvements with non-tight constraints, welfare -improving increases of public inefficiency, conditions for optimal prices and quantities, compensating for income effects, and conditions for optimal quality. The book then ponders on marginal-cost pricing, Ramsey pricing, rate of return regulation, and pricing with distributional aims. Topics include comparing distributional and allocative pricing, prices versus taxes, optimum Ramsey policy, influence of Ramsey prices on allocation, distribution, and stabilization, and consequences for allocation, distribution, and stabilization. The publication examines bus and underground services in London, economic theory and empirical analysis, and different approaches towards optimal quality, including empirical studies on bus and underground demand, organizational and political history, and microeconomics of the representative consumer. The book is a valuable source of data for researchers interested in public enterprise economics.

UK. Textbook on the economics of public enterprise - covers pricing, investment decision making, planning, etc. Flow charts, graphs, references and statistical tables.

This timely book argues that the overcrowding of national parks in the United States represents a social problem in need of public sector action and a policy solution, as no systematic means to address this problem has been implemented either nationally or on a park-by-park basis. Throughout the book, Albert N. Link provides an innovative pricing solution to the overcrowding of the parks which will help to change the existing status quo. Utilizing a methodology grounded in economics, and expanding the use and policy relevance of the concept of public sector entrepreneurship, the author illustrates how individuals respond to prices and offers a method to estimate the impact of a seasonal entrance fee based on calculated price elasticities of demand. Chapters also provide recommendations for increases in seasonal entrance fees individually for each of the national parks that currently have an entrance fee. Public Sector Entrepreneurship will be a key resource for academics and students in the fields of entrepreneurship, public management and resource management who are looking to use economics as a framework for analyzing tourism topics, as well as environmental researchers and public policy officials responsible for national parks.

The Growth Of Public Enterprises In Size And Diversity, Making Them Play An Increasing Important Role In Shaping The Pace And The Pattern Of The National Economy Has Been Traced To The Entrepreneurial Efforts Of The Government In Line With Industrial Policy Resolutions, Nationalizations And Taking Over Of Private Sector Sick Units. The Importance Of The Price Policy Of Public Enterprises Vis-À-Vis The Role Assigned To Them Has Been Examined In Relation To Their Public And Private Profitability In Conformity With The Nature Of Their Cost Structure So As To Effectively Tackle The Issues Of Non-Commercial Costs, Inefficiencies At The Project And The Operational Stage, Planned And Unplanned Excess Capacities And Investments On Considerations Of Long-Term Economic Growth Complicating Formulation Of An Appropriate Price Policy Of Public Enterprises And Their Objective Performance Evaluation.On The Basis Of Cost Exclusions And Inclusions, Replacement Cost Depreciation And A Rate Of Return On Adjusted Capital Base, A Model Of Costs Has Been Structured To Form A Basis For Pricing In A Non-Competitive Set Up So As To Simultaneously Fulfil The Interests Of The Enterprise, The Appraiser, The Consumer, The Management And The Overall Interest Of The Economy By Promoting Efficient Resource Allocation, Resource Generation, Distributional Improvements, Regional Balance, Price Stabilization, Efficiency In Operations Accompanying Technological Improvements And Generation Of Employment. It Is Through The Pricing Based On A Normative Cost Structure Formulated At Optimum Level Of Efficiency And Introducing Transparency In Their Performance Reporting That Public Enterprises Can Serve As An Effective Instrument Of Equitable Growth At A Faster Rate And Discharge Their Responsibilities To The Nation Which Their Commanding Heights Bestow On Them.