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Cross subsidization

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73:, political economics author and statistician and Finnish parliamentarian, cross-subsidy leads to welfare losses for passengers in urban areas, arguing that even if there are reasons for subsidizing public transport in sparsely populated areas, it is better to provide subsidy from general taxation rather than have passengers in more densely populated areas provide subsidy by directing profits from reinvestment in these services. This results in higher fares, lower staff wages, lower frequencies and older vehicles on popular services, reduce the attractiveness of services and spreading 170: 81:
Some economists argue that cross subsidization in state owned enterprises increases the likelihood of anticompetitive practices such as predatory pricing. They argue that regulators, such as U.S. postal regulators, should monitor a state monopoly's cost allocation to ensure that revenue generated in
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of unprofitable services to profitable services and can result in cuts to profitable services to cover expected and unexpected losses. Cross-subsidy puts the financial burden for unprofitable services on passengers who often have the least ability to pay. He also notes that in sparsely populated
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control over marketing agricultural exports are sometimes alleged to cross subsidize, but lack of transparency in their operations makes it difficult, if not impossible, to determine if that is the case.
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among others are cross-subsidized. In some cases, there is a universal price ceiling for the services, leading to cross subsidies benefiting the areas for which the costs of provision are high.
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David E. M. Sappington & J. Gregory Sidak, Incentives for Anticompetitive Behavior by Public Enterprises, 22 REV. INDUS. ORG. 183, 184 (2003),
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J. Gregory Sidak, Maximizing the Postal Service's Profits from Competitive Products, 11 J. COMP. L. & ECON. 617 (2015),
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is the practice of charging higher prices to one type of consumers to artificially lower prices for another group.
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https://www.criterioneconomics.com/incentives-for-anticompetitive-behavior-by-public-enterprises.html
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Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition
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the monopolized market is not used to lessen competition in competitive markets.
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areas, cars are often more ecologically friendly than buses.
8: 27:Higher prices to fund lower prices elsewhere 207:United States Department of Agriculture 107: 7: 131:Bussiliikenne alistetaan kilpailulle 115:VR hinnoittelee yhä pahemmin väärin 25: 173: This article incorporates 168: 190:Congressional Research Service 1: 57:, electricity tariffs, and 223: 35:State trading enterprises 175:public domain material 45:In many countries, 31:Cross subsidization 59:collective traffic 51:broadband accesses 47:telecommunications 16:(Redirected from 214: 193: 187: 172: 171: 162: 157: 151: 144: 138: 135:Osmo Soininvaara 128: 122: 119:Osmo Soininvaara 112: 71:Osmo Soininvaara 21: 222: 221: 217: 216: 215: 213: 212: 211: 197: 196: 185: 179:Jasper Womach. 178: 169: 165: 158: 154: 145: 141: 129: 125: 113: 109: 105: 88: 75:financial risks 67: 55:postal services 28: 23: 22: 15: 12: 11: 5: 220: 218: 210: 209: 199: 198: 195: 194: 164: 163: 152: 139: 123: 106: 104: 101: 100: 99: 94: 87: 84: 66: 63: 26: 24: 14: 13: 10: 9: 6: 4: 3: 2: 219: 208: 205: 204: 202: 191: 184: 183: 176: 167: 166: 161: 156: 153: 149: 143: 140: 136: 132: 127: 124: 120: 116: 111: 108: 102: 98: 95: 93: 90: 89: 85: 83: 79: 76: 72: 69:According to 64: 62: 60: 56: 52: 48: 43: 40: 36: 32: 19: 18:Cross subsidy 181: 155: 142: 126: 110: 80: 68: 44: 30: 29: 137:, 17.7.2012 121:, 16.6.2010 49:(including 103:References 65:Criticism 201:Category 86:See also 39:monopoly 97:Subsidy 92:Feebate 186:(PDF) 177:from 37:with 53:), 203:: 188:. 133:, 117:, 192:. 150:. 20:)

Index

Cross subsidy
State trading enterprises
monopoly
telecommunications
broadband accesses
postal services
collective traffic
Osmo Soininvaara
financial risks
Feebate
Subsidy
VR hinnoittelee yhä pahemmin väärin
Osmo Soininvaara
Bussiliikenne alistetaan kilpailulle
Osmo Soininvaara
https://www.criterioneconomics.com/incentives-for-anticompetitive-behavior-by-public-enterprises.html

public domain material
Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition
Congressional Research Service
Category
United States Department of Agriculture

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