The Nash-Bargaining Solution for Public Sector Pricing Problems

Somdeb Lahiri

IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: In this paper e study some issues in positive second-best theory, specifically the theory of optimal pricing of private goods produced by public firms; that is, firms whose objective departs from profit maximization. The approach in this paper differs from earlier analysis of the so-called Ramsey pricing problem, in that we embed our problem in a bargaining theory framework.

Date: 1991-09-01
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Persistent link: https://EconPapers.repec.org/RePEc:iim:iimawp:wp01042

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