IDEAS home Printed from https://ideas.repec.org/a/sae/pubfin/v10y1982i4p499-509.html
   My bibliography  Save this article

On Deriving Pricing Rules in the Theory of Second Best

Author

Listed:
  • John P. Walsh

    (Gulf Oil Corporation)

Abstract

The purpose of this article is to generalize the Lipsey-Lancaster "mixed economy" example in order to establish the second-best pricing rules exactly. We establish the required assumptions concerning the relationship between the monopoly and the competitive industry. We also establish a partial characterization of the second-best optimum. The general principles developed in the article can be applied to a number of other public sector problems .

Suggested Citation

  • John P. Walsh, 1982. "On Deriving Pricing Rules in the Theory of Second Best," Public Finance Review, , vol. 10(4), pages 499-509, October.
    • Handle: RePEc:sae:pubfin:v:10:y:1982:i:4:p:499-509
    DOI: 10.1177/109114218201000406
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/109114218201000406
    Download Restriction: no
    File URL: https://libkey.io/10.1177/109114218201000406?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard Dusansky & John Walsh, 1976. "Separability, Welfare Economics and the Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 43(1), pages 49-51.
    2. Otto A. Davis & Andrew B. Whinston, 1965. "Welfare Economics and the Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(1), pages 1-14.
    3. Sandler, Todd, 1978. "Public Goods and the Theory of Second Best," Public Finance = Finances publiques, , vol. 33(3), pages 331-344.
    4. Abram Bergson, 1972. "Optimal Pricing for a Public Enterprise," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 86(4), pages 519-544.
    5. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David Wiens, 2016. "Assessing ideal theories," Politics, Philosophy & Economics, , vol. 15(2), pages 132-149, May.
    2. Delucchi, Mark A. & Murphy, James J., 2008. "How large are tax subsidies to motor-vehicle users in the US?," Transport Policy, Elsevier, vol. 15(3), pages 196-208, May.
    3. Clarence Morrison, 1981. "Second best and monopoly: A cautionary tale," Public Choice, Springer, vol. 37(2), pages 275-285, January.
    4. V. W. Yorgason, 1976. "But Who Reviews the Reviewers? The Case of Eggs," Canadian Public Policy, University of Toronto Press, vol. 2(3), pages 511-519, Summer.
    5. Melvin Hinich & Michael Munger, 2006. "In memoriam: Otto “Toby” Davis, 1934–2006," Public Choice, Springer, vol. 128(3), pages 357-359, September.
    6. Krishna, Pravin & Panagariya, Arvind, 2000. "A unification of second best results in international trade," Journal of International Economics, Elsevier, vol. 52(2), pages 235-257, December.
    7. Roger L. Faith & Earl A. Thompson, 1979. "A Paradox in the Theory of Second Best," UCLA Economics Working Papers 156, UCLA Department of Economics.
    8. Wai Chiu Woo, 2017. "The Way We Teach Public Economics: A Rationalization Using the Theory of Third Best," Pacific Economic Review, Wiley Blackwell, vol. 22(2), pages 229-248, May.
    9. Emmanuel Petrakis & Panagiotis Skartados, 2022. "Vertical Opportunism, Bargaining, and Share-Based Agreements," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 60(4), pages 549-565, June.
    10. Jonathan M. Lee, 2015. "The Impact of Heterogeneous NOx Regulations on Distributed Electricity Generation in U.S. Manufacturing," Working Papers 15-12, Center for Economic Studies, U.S. Census Bureau.
    11. Sergio Turner, 2004. "Pareto Improving Taxation in Incomplete Markets," Econometric Society 2004 Latin American Meetings 310, Econometric Society.
    12. Kala Krishna & Abhiroop Mukhopadhyay & Cemile Yavas, 2005. "Trade with Labor Market Distortions and Heterogeneous Labor: Why Trade Can Hurt," Contributions to Economics, in: Günter S. Heiduk & Kar-yiu Wong (ed.), WTO and World Trade, pages 65-83, Springer.
    13. Hakim Hammadou & Claire Papaix, 2015. "Policy packages for modal shift and CO2 reduction in Lille, France," Working Papers 1501, Chaire Economie du climat.
    14. Michael Bates & Michael Dinerstein & Andrew C. Johnston & Isaac Sorkin, 2022. "Teacher Labor Market Equilibrium and Student Achievement," CESifo Working Paper Series 9551, CESifo.
    15. Juan Carlos De Pablo, 2001. "Ideas, intereses y valores," CEMA Working Papers: Serie Documentos de Trabajo. 196, Universidad del CEMA.
    16. Morrison, Alan & Lóránth, Gyöngyi, 2009. "Internal Reporting Systems, Compensation Contracts, and Bank Regulation," CEPR Discussion Papers 7155, C.E.P.R. Discussion Papers.
    17. Venables, Anthony & Duranton, Gilles, 2018. "Place-Based Policies for Development," CEPR Discussion Papers 12889, C.E.P.R. Discussion Papers.
    18. Frewer, Geoff, 1985. "Optimal Destabilisation, Active Learning, and the Choice of Step Length in Policy Reform," Economic Research Papers 269230, University of Warwick - Department of Economics.
    19. repec:spo:wpmain:info:hdl:2441/56k383m9o9kpb1g6f8rvv74ok is not listed on IDEAS
    20. David S. Evans & Richard Schmalensee, 2005. "The economics of interchange fees and their regulation : an overview," Proceedings – Payments System Research Conferences, Federal Reserve Bank of Kansas City, issue May, pages 73-120.
    21. Key, Nigel D. & Kaplan, Jonathan D., 2007. "Multiple Environmental Externalities and Manure Management Policy," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(01), pages 1-20, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:10:y:1982:i:4:p:499-509. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.