Efficient pricing with rivalry between a railroad and a pipeline.

Research output: Contribution to journalArticlepeer-review

Abstract

Discusses the technology of such systems and reviews some of the history of such competition. Characterizes the Ramsey optimum (maximum welfare subject to break-even constraints for both the railroad and the pipeline) for the problem. Shows that when both types of firms transport coal, tariffs will exceed marginal costs and the markup of price over marginal cost will be greater in markets served by rival firms than in markets monopolized by one of the technologies. It can be socially optimal for one of the firms to earn extranormal profits.-from Editor

Original languageEnglish (US)
Pages (from-to)207-220
Number of pages14
JournalUnknown Journal
DOIs
StatePublished - 1986

ASJC Scopus subject areas

  • Environmental Science(all)
  • Earth and Planetary Sciences(all)

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