Policies for Public Services under No Competition
This chapter and the following chapter address pricing and investment policies for public services or facilities that possess the following two properties: first, they exhibit or have the potential to exhibit congestion; second, their users are supposed to pay direct user fees or indirect taxes to access such services or facilities. These services or facilities comprise toll roads, urban mass transit systems, airports, harbors, public museums, parking garages, and public sport and convention facilities. Toll-free highways can also be sorted into this type of public facility, since road users must pay various user charges in the form of indirect taxes such as fuel and vehicle taxes.
KeywordsService Time Social Welfare Function Indifference Curve Indirect Utility User Equilibrium
- Diamond PA, Mirrlees JA (1971) Optimal taxation and public production. Am Econ Rev 62(8–27):261–78Google Scholar
- Mohring H (1970) The peak load problem with increasing returns and pricing constraints. Am Econ Rev 60:693–705Google Scholar
- Samuelson PA (1947) Foundations of economic analysis. Harvard University Press, CambridgeGoogle Scholar