"Almost" subsidy-free spatial pricing in a multi-dimensional setting

نویسندگان

  • Jacques Drèze
  • Michel Le Breton
  • Alexei Savvateev
  • Shlomo Weber
چکیده

Consider a population of citizens uniformly spread over the entire plane, that faces a problem of locating public facilities to be used by its members. The cost of every facility is financed by its users, who also face an idiosyncratic private access cost to the facility. We assume that the facilities’ cost is independent of location and access costs are linear with respect to the Euclidean distance. We show that an external intervention that covers a tiny portion of the facility cost is sufficient to guarantee secession-proofness or no cross-subsidization, where no group of individuals is charged more than its stand alone cost incurred if it had acted on its own. Moreover, we demonstrate that in this case the Rawlsian access pricing is the only secession-proof allocation.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Modelling the Heterogeneous Price Setting Behavior of Firms (DSGE Approach)

Despite the empirical evidence of the difference in the degree of price stickiness of goods and services, in the new standard Keynesian models, the same price stickiness is considered for all firms producing intermediate goods. In recent years, a new generation of pricing models has been introduced to simulate the heterogeneous price setting behavior in which, unlike standard pricing models, th...

متن کامل

Proxy Means Tests for Targeting Subsidies Scheme in Iran

In this paper I develop a Proxy Means Tests (PMT) model and examine several targeting lines based on 2008 household survey data to identify beneficiaries for a targeting subsidy scheme in Iran. Based on the findings of this study, setting a cut-off percentile of 40% is expected to provide compensation for almost 70 percent of the poorest households. This will result in the highest accuracy main...

متن کامل

(T) FUZZY INTEGRAL OF MULTI-DIMENSIONAL FUNCTION WITH RESPECT TO MULTI-VALUED MEASURE

Introducing more types of integrals will provide more choices todeal with various types of objectives and components in real problems. Firstly,in this paper, a (T) fuzzy integral, in which the integrand, the measure andthe integration result are all multi-valued, is presented with the introductionof T-norm and T-conorm. Then, some classical results of the integral areobtained based on the prope...

متن کامل

Developing an urban congestion pricing model by considering sustainability improvement and using a multi-objective optimization approach

This paper introduces a Travel Demand Management (TDM) model in order to decrease the transportation externalities by affecting on passengers’travel choices. Thus, a bi-objective bi-modal optimization model for road pricing is developed aiming to enhance environmental and social sustainability by considering to minimize the air pollution and maximize the social welfare as its objectives. This m...

متن کامل

Envy, Multi Envy, and Revenue Maximization

We study the envy free pricing problem faced by a seller who wishes to maximize revenue by setting prices for bundles of items. Consistent with standard usage [9] [10], we define an allocation/pricing to be envy free if no agent wishes to replace her allocation (and pricing) with those of another agent. If there is an unlimited supply of items and agents are single minded then we show that find...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:
  • J. Economic Theory

دوره 143  شماره 

صفحات  -

تاریخ انتشار 2008