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Ramsey problem — latest news, discussion & facts — IJR

Ramsey problem

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Ramsey problem

problem of setting prices by a public monopoly

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About Ramsey problem

The Ramsey problem, or Ramsey pricing, or Ramsey–Boiteux pricing, is a second-best policy problem concerning what prices a public monopoly should charge for the various products it sells in order to maximize social welfare while earning enough revenue to cover its fixed costs.

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