This paper summarizes two possible pricing schemes. Under the first, called totally regulated second best (TRSB), prices and entry are controlled for all modes to maximize economic efficiency while allowing a mode with economies of scale to break even. Under the second, called partially regulated second best (PRSB), modes without economies of scale are unregulated, and price and entry controls are imposed on a mode with economies of scale in order to maximize economic efficiency for all transportation activities. The paper compares PRSB and TRSB in terms of the potential information requirements, administrative costs, and problems in implementation and shows why each may be of interest as a public policy alternative.
|Original language||English (US)|
|Number of pages||7|
|Journal||Transportation Research Record|
|State||Published - Jan 1 1978|
ASJC Scopus subject areas
- Civil and Structural Engineering
- Mechanical Engineering