Publisher Summary This chapter examines some of the optimal policies that are used to
control a natural monopoly. Although the traditional view suggests that government …

Publisher Summary This chapter discusses the game-theory literature on cost allocation.
Cost allocation not only provides internal signals that guide a firm's operations but also may …

Debate about deregulation has focused considerable attention on the pricing policies of
public utilities. Much work has been done by economists on this subject, and in this book the …

The pricing of infrastructure, such as this of commercially competing ports, is one of the most
controversial aspects of the global economy of the 21 st century. The controversy arises from …

Advanced Textbooks in Economics, Volume 23: Public Enterprise Economics: Theory and
Application focuses on economics, mathematical economics, and econometrics, including …

Competition may not function well where technology calls for large and complex
investments, as in the electrivity industry where public utilities often provide service. This …

We propose here a new approach for equitable cost sharing pricing based upon the
Shapley value for nonatomic games. However, it is shown that the proposed price …

The Shapley value theory is extended to cost functions with multiple outputs (or to
production functions with multiple inputs) where each output is demanded by a different …

Publisher Summary This chapter discusses public sector pricing. Prices are an excellent
instrument for coordinating supply and demand, provided people who do not pay can be …

The Aumann-Shapley (AS) prices are axiomatically determined on certain classes of
piecewise continuously differentiable cost functions. One of these classes consists of all cost …