Market Provision of Price-excludable Public Goods

A General Analysis

Bibliographic Data

ID10177244
AuthorsMichael E Burns (0000-0002-9587-563X), Cliff Walsh
Year1981
Volume89
Issue1
Pages166-191
Publication date1981-02-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/260956
OpenAlexW2088277822
LanguageEN
Citations received3
References cited3

The demand distribution is employed as a novel and powerful basis for analyzing monopoly provision of price-excludable public goods (and could be used to analyze other market structures or, in some circumstances, private goods provision). For (uniform) per-unit, all-or-none, two-part, and multipart pricing, we identify: Characteristics of revenue functions, relative profitability, and operational procedures for selecting price-output levels. Under all these strategies, rationing of some consumers by output is required, and a positive price-output relationship may arise. In general the revenue ranking of pricing strategies is sensitive to the distribution of demand and, though multipart pricing can be expected to be revenue dominant, uniform per-unit pricing emerges as a surprisingly robust strategy even before operational complexity is fully taken into account

Distribution (mathematics · Economics · Excludability · Market price · Microeconomics · Monopoly · Price discrimination · Private good · Profitability index · Public good · Ranking (information retrieval · Rationing · Revenue · Computer Science · Economic theories and models · Finance · Fiscal Policy and Economic Growth · Global Health Care Issues

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