A note on subsidy-free prices and scope economies

Dennis Weisman

Applied Economics Letters, 2011, vol. 18, issue 15, 1463-1468

Abstract: The necessary admissible range of subsidy-free prices is bounded from above by the incremental scope economy measure for the service - the difference between total scope economies and the scope economies associated with the complement of the service. These incremental scope economy measures provide an alternative, though no less computationally burdensome, approach for deriving sufficient (necessary) conditions for subsidy-free prices.

Date: 2011
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DOI: 10.1080/13504851.2010.543064

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