English, Article edition: A Simple Characterization of the Second-best Two-part and Block-rate Tariffs Theory and Applications J–rg Borrmann

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  • article
Language
  • English

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Title
  • A Simple Characterization of the Second-best Two-part and Block-rate Tariffs Theory and Applications
Author
  • J–rg Borrmann
Physical Description
  • article
Notes
  • The general necessary optimality conditions for second-best discrete multipart tariffs are rather complex. In this paper, we derive a simplified characterization of these conditions for two-part tariffs and for block-rate tariffs for given thresholds of these tariffs. The simplified necessary optimality conditions are equivalent to the necessary conditions for a Ramsey-optimum for goods with continuously variable individually demanded quantities. We demonstrate that this characterization of second-best multipart tariffs can be helpful, when applying the usual regulatory mechanisms to these tariffs. In particular, we consider Vogelsang-Finsinger &​lpar;1979&​rpar; regulation as well as a particular form of price-cap regulation which is related to the Laspeyres index of prices. Copyright CIRIEC, 2003.
  • RePEc:bla:annpce:v:74:y:2003:i:2:p:205-228
Language
  • English
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