X.L. Gong, X. Wang
This paper studies the maximizing second-best pricing model of social welfare under achieving the breakeven of high-speed railway products at different seating classes. Different seating classes have different Ramsey index, so it is called “Differential Ramsey Pricing Model”. Firstly, this paper introduces the hypothesis conditions for constructing the differential Ramsey second-best pricing model. Then the model is deduced to obtain the pricing formula, while the Ramsey index and Lagrange multiplier value range, pricing range and implementation effect are further analyzed. In the model construction, two pricing models are provided: one is the general differential Ramsey pricing model, and the other is the differential Ramsey pricing model which introduces the transport capacity restriction condition to be modified. Finally, the empirical calculation of the effects of profits, consumer surplus and total social welfare under different Ramsey indices is carried out to verify the applicability of the model. The two reasonable pricing methods provided in this paper provide specific guidance for high-speed railway pricing, which has certain guiding significance for practical work.
Keywords: high-speed railway; differential Ramsey index; operating cost; second-best pricing; shadow price; implementation effect