Ramsey pricing (1927)
Named after English economist Frank Ramsey (1903-1960), Ramsey pricing is concerned with prices that maximize the sum of industry consumer surplus and profits. Also see: average cost pricing, marginal cost pricing, cost-push inflation Source: F Ramsey, ‘A Contribution to the Theory of Taxation’, Economic Journal, 37 (March, 1927), 47-61 Description In a first-best world, without the need to earn