Price Distortions and Second Best Investment Rules in the Transportation Industries.
There has recently been considerable interest in the question of second best pricing rules in the surface freight industries. This article extends this second best analysis in the transportation industries to the problem of investment and shows that in the presence of price distortions, first best i...
| Publicado en: | American Economic Review Vol. 71; no. 2; pp. 389 - 394 |
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| Formato: | Artículo |
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American Economic Association
May81
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4502112&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4502112 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: May81 vid: 71 iid: 2 pid: 22 pub: American Economic Association artinfo: ui: 4502112 ppf: 389 ppct: 5 formats: tig: atl: Price Distortions and Second Best Investment Rules in the Transportation Industries. aug: au: Friedlaender, Ann F. affil: Massachusetts Institute of Technology. su: Price regulation Transportation industry Industrial laws & legislation Investments Economic demand Cost Competition sug: subj: Price regulation Transportation industry Industrial laws & legislation Investments Economic demand Cost Competition ab: There has recently been considerable interest in the question of second best pricing rules in the surface freight industries. This article extends this second best analysis in the transportation industries to the problem of investment and shows that in the presence of price distortions, first best investment rules should generally not be used. While the specific second best investment rules that should be followed typically are complicated expressions that depend upon the underlying cost and demand functions. This article thus explores the relationship of investment rules to price distortions from both a theoretical and an empirical perspective. The theoretical analysis presents the argument in the simplest case of a single mode producing a single output and thus provides a relatively intuitive discussion of the problem. The empirical discussion then presents a simulation analysis of second best investment levels in the railroad industry in the context of intermodal competition and multiple outputs. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1981 holdings: @attributes: islocal: N |
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