Ramsey pricing
E381619
Ramsey pricing is an economic principle that prescribes how a regulated monopolist should set prices across different markets to minimize welfare loss while covering total costs, typically by marking up prices more in less price-sensitive markets.
All labels observed (3)
| Label | Occurrences |
|---|---|
| Ramsey pricing canonical | 2 |
| Ramsey–Boiteux pricing | 1 |
| Ramsey–Boiteux pricing rule | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T3725150 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: Ramsey pricing Context triple: [F. P. Ramsey, notableWork, Ramsey pricing]
-
A.
Competition in Telecommunications (with Jean-Jacques Laffont)
"Competition in Telecommunications" is an influential economic analysis of regulation, market structure, and incentives in the telecommunications industry, co-authored by Jean Tirole and Jean-Jacques Laffont.
-
B.
A Theory of Incentives in Procurement and Regulation (with Jean-Jacques Laffont)
A Theory of Incentives in Procurement and Regulation is a foundational economics book that develops a rigorous principal–agent framework for designing optimal contracts and regulatory mechanisms in public procurement and regulated industries.
-
C.
The Theory of Industrial Organization
The Theory of Industrial Organization is a foundational economics textbook by Jean Tirole that systematically develops modern industrial organization theory using game-theoretic tools.
-
D.
Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
-
E.
Pigouvian taxes
Pigouvian taxes are corrective taxes designed to address negative externalities by aligning private costs with social costs, thereby improving overall economic efficiency.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: Ramsey pricing Target entity description: Ramsey pricing is an economic principle that prescribes how a regulated monopolist should set prices across different markets to minimize welfare loss while covering total costs, typically by marking up prices more in less price-sensitive markets.
-
A.
Competition in Telecommunications (with Jean-Jacques Laffont)
"Competition in Telecommunications" is an influential economic analysis of regulation, market structure, and incentives in the telecommunications industry, co-authored by Jean Tirole and Jean-Jacques Laffont.
-
B.
A Theory of Incentives in Procurement and Regulation (with Jean-Jacques Laffont)
A Theory of Incentives in Procurement and Regulation is a foundational economics book that develops a rigorous principal–agent framework for designing optimal contracts and regulatory mechanisms in public procurement and regulated industries.
-
C.
The Theory of Industrial Organization
The Theory of Industrial Organization is a foundational economics textbook by Jean Tirole that systematically develops modern industrial organization theory using game-theoretic tools.
-
D.
Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
-
E.
Pigouvian taxes
Pigouvian taxes are corrective taxes designed to address negative externalities by aligning private costs with social costs, thereby improving overall economic efficiency.
- F. None of above. chosen
Statements (47)
| Predicate | Object |
|---|---|
| instanceOf |
pricing principle
ⓘ
regulatory pricing rule ⓘ second-best pricing solution ⓘ |
| alternativeName |
Ramsey–Boiteux pricing rule
ⓘ
linked to:
Ramsey pricing
|
| analogousTo | Ramsey rule in optimal commodity taxation ⓘ |
| appliedIn |
energy and electricity tariffs
ⓘ
public utilities regulation ⓘ telecommunications pricing ⓘ transport infrastructure pricing ⓘ |
| appliesTo |
multi-market firms
ⓘ
multi-product firms ⓘ natural monopolies ⓘ regulated monopolies ⓘ |
| assumes |
firm must at least break even
ⓘ
known demand elasticities across markets ⓘ regulator maximizes social welfare ⓘ |
| basedOn | inverse elasticity rule ⓘ |
| characterizedBy |
differential pricing across consumer groups or markets
ⓘ
higher markups in markets with lower price elasticity of demand ⓘ lower markups in markets with higher price elasticity of demand ⓘ |
| constraint |
non-negative prices
ⓘ
total revenue must cover total cost ⓘ |
| criticizedFor |
implementation complexity for regulators
ⓘ
information requirements about demand elasticities ⓘ potential regressivity ⓘ |
| field |
industrial organization
ⓘ
microeconomics ⓘ public economics ⓘ |
| goal |
allow a regulated firm to cover total costs
ⓘ
approximate efficient pricing when marginal-cost pricing is infeasible ⓘ minimize welfare loss subject to a break-even constraint ⓘ |
| implies |
cross-subsidization between consumer groups or markets
ⓘ
prices above marginal cost in at least some markets ⓘ |
| introducedBy |
Frank P. Ramsey
ⓘ
linked to:
F. P. Ramsey
|
| normativeStatus | welfare-maximizing under given constraints ⓘ |
| objectiveFunction | sum of consumer surplus and producer surplus ⓘ |
| optimizationMethod | constrained welfare maximization ⓘ |
| originatesFrom | Frank P. Ramsey’s 1927 article on optimal taxation ⓘ |
| relatedTo |
Ramsey–Boiteux pricing
ⓘ
linked to:
Ramsey pricing
marginal-cost pricing ⓘ optimal taxation ⓘ peak-load pricing ⓘ price discrimination ⓘ |
| requires |
estimation of demand elasticities
ⓘ
knowledge of firm cost structure ⓘ |
| tradeOff | efficiency versus distributional equity ⓘ |
| usesTool | Lagrange multipliers ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: Ramsey pricing Description of subject: Ramsey pricing is an economic principle that prescribes how a regulated monopolist should set prices across different markets to minimize welfare loss while covering total costs, typically by marking up prices more in less price-sensitive markets.
Referenced by (4)
Full triples — surface form annotated when it differs from this entity's canonical label.