Economic Theory of Public Enterprise [Paperback]

? 1 Introduction.- ? 2 Theoretical foundations of allocation policy.- 1. Benefit-cost analysis and consumer surplus.- 1.1 An empirically applicable welfare basis for public enterprise policy.- 1.2 Different kinds of consumer surplus reconsidered.- 2. Partial versus general microeconomic analysis.- 3. The quantitative importance of allocative efficiency.- ? 3 Marginal-cost pricing.- 1. Economic interpretation of marginal-cost pricing.- 2. Joint production, quality differentiation and peakload pricing.- 3. Zerotariffs as a special concept for allocation.- 4. Regulating marginal-cost prices.- 4.1 Theoretical background.- 4.2 The problem of cross-subsidization.- 4.3 Problems of practical application of marginal-cost prices.- 4.4 The British experiences.- 5. Consequeaces for allocation, distribution and stabilization.- ? 4 Welfare maximization under a revenue-cost constraint.- 1. Nonlinear and nonuniform pricing.- 1.1 In search of an optimal price schedule.- 1.2 Nonuniform pricing.- 2. Uniform pricing ? la Ramsey.- 3. On the opportunity costs of financing deficits.- 4. Regulating Ramsey prices.- 4.1 Regulation by changing environment.- 4.2 Regulation by fixing relevant variables in a given environment.- 5. Economic consequences of Ramsey prices and of two-part tariffs.- 5.1 Cross-subsidization.- 5.2 Influence on allocation, distribution and stabilization.- ? 5 Interdependencies with the private economy.- 1. Interdependencies caused by producers.- 1.1 A simple (graphical) example.- 1.2 Welfare maximizing public enterprise with profit constrained private enterprises.- 2. Interdependencies caused by consumers.- 2.1 Congestion effects.- 2.2 Capacity limits of public peak traffic.- 2.3 Demand interdependencies and energy conservation.- ? 6 Non-allocational objectives.- 1. Description of different non-allocative objectives.- 1.1 Maximizing a distributionally weighted consumer surplus.- 1.2 Minimizing price indices.- 1.3 Sales (revenue) maximization.- 1.4 Output maximization.- l8