Supportability, Sustainability, and Subsidy-Free Prices

This article studies the relationships among the concepts of subsidy-free prices, anonymously equitable prices, supportability, and sustainability. In particular, we set out conditions under which these concepts are not vacuous. Several new sets of conditions under which a subsidy-free price vector is sustainable are also presented. For general, nonseparable demands, we establish the existence of an Aumann-Shapley price vector that is anonymously equitable and sustainable.

[1]  Philip Wolfe,et al.  Contributions to the theory of games , 1953 .

[2]  L. Shapley.  Cores of convex games , 1971 .

[3]  Gerald R. Faulhaber,et al.  Cross-Subsidization: Pricing in Public Enterprises , 1975 .

[4]  William J. Baumol,et al.  Weak Invisible Hand Theorems on the Sustainability of Multiproduct Natural Monopoly , 1977 .

[5]  John C. Panzar,et al.  Free Entry and the Sustainability of Natural Monopoly , 1977 .

[6]  L. Telser,et al.  Supportable cost functions for the multiproduct firm , 1978 .

[7]  W. Sharkey.  Existence of Sustainable Prices for Natural Monopoly Outputs , 1981 .

[8]  Gerald R. Faulhaber,et al.  Subsidy-Free Prices and Anonymous Equity [Cross-Subsidization: Pricing in Public Enterprises] , 1981 .

[9]  Louis J. Billera,et al.  Allocation of Shared Costs: A Set of Axioms Yielding A Unique Procedure , 1982, Math. Oper. Res..

[10]  Yair Tauman,et al.  Demand Compatible Equitable Cost Sharing Prices , 1982, Math. Oper. Res..

[11]  W. Baumol,et al.  Contestable Markets and the Theory of Industry Structure , 1982 .

[12]  T. Raa.  Supportability and anonymous equity , 1983 .

[13]  Dov Samet,et al.  An Axiomatic Approach to the Allocation of a Fixed Cost Through Prices , 1983 .

[14]  T. Raa.  Resolution of Conjectures on the Sustainability of Natural Monopoly , 1984 .

[15]  Daniel F. Spulber.  Scale economies and existence of sustainable monopoly prices , 1984 .

[16]  Leonard J. Mirman,et al.  Ramsey prices, average cost prices and price sustainability , 1986 .