Research On Pricing Excitation Of Infrastructure Project Financing Product Based On Discriminatory Pricing Theory

Recently, with the rapid development of the city and the population, existing infrastructure has been unable to meet people’s requirements for improving the quality of life. Besides, the contradiction between supply and demand is increasingly evident. Faced with these problems, we need enterprises to construct and operate the infrastructure, but how to attract the enterprise investment infrastructure construction and operation is currently facing a major problem. Profit is the primary factor in deciding whether to invest in a business, and the price of the infrastructure is the key to deciding profit. Therefore, it is necessary to study the problem of the price of the infrastructure.Because of the nature monopoly and the cost deterioration of the infrastructure, so there have a lot of problems in pricing the infrastructure project. If there is no price control on companies, they will continue to increase price. As a result, it produces a monopoly price and leads to damage on the interests of consumers. In order to maintain the balance between the interests of society and enterprises, scholars put forward to control the price of natural monopoly products for correcting the welfare losses. However, due to the existence of the control costs and information asymmetry, the price regulation is not satisfying. Until the 80’s, government intervention to increase the loss of business, and thus lead to investment in infrastructure projects less and less. To solve this problem, the paper summarizes the traditional theory of natural monopoly product pricing, and puts forward the Ramsey theory in the product pricing.The first part is the introduction and the relevant literature part:the article states the current state of the urban development and the need for infrastructure and the necessity of research on the pricing of infrastructure, as well as the theoretical significance and practical significance of the research on the pricing of basic facilities. Then, it describes the research content and framework of this paper, and illustrates the innovation points and shortcomings of this paper. According to the related literature research, the paper expounds the marginal cost pricing theory, the average cost pricing theory, the peak pricing theory and the discriminatory pricing theory. Firstly, the marginal cost pricing method and the average cost pricing method are studied, but the two pricing methods have some defects in the infrastructure pricing. Therefore, Ramsey pricing theory is introduced in the pricing method of infrastructure. As a single price can’t bring more profits to the enterprise, and waste the social resources, reduce the social efficiency, we put forward the idea of different pricing in different time which called peak pricing theory. Then according to the research of domestic and foreign related literature, to keep the balance between the interests of the society, the interests of the enterprises, and the interests of the individual, the paper make research on the price strategy of urban sustainable development and attracting business investment.The second part is the research on the price incentive distortion. Firstly, we study the impact of marginal cost and average cost on the enterprise, consumer and society. However, due to the natural monopoly of infrastructure projects, it lead to the production costs of infrastructure products gradually reduced. According to the principle of marginal cost pricing principle, in this case, the price is lower than the average cost, which will make the enterprise losses. And it is not conducive to investment in the infrastructure industry, which will generate investment distortions, and thus cause market failure. If we use the average cost pricing in infrastructure project financing products, the enterprise has reached the balance of payments, but it will not produce an appropriate cost incentive. In this case, enterprises don’t have incentives to reduce the cost of projects, which will lead to the social welfare losses. So we introduce the Ramsey pricing theory in the pricing of infrastructure projects.The third part is the discriminatory pricing. Discriminatory pricing is a pricing method that is based on the maximization of the balance of costs and benefits and the maximization of social welfare. Discriminatory pricing can make the enterprise obtain more benefits and realize the profit target and increase the whole social welfare. As a kind of discriminatory pricing, Ramsey pricing has more advantages. At last, the paper explains the connotation and model of Ramsey pricing, and gives some examples of the application of Ramsey pricing theory to prove the practical nature of Ramsey in real life. The Ramsey pricing theory can achieve the purpose of increasing the return of the enterprise and attracting the investment.The fourth part is the empirical part, in order to test the application of Ramsey pricing theory in infrastructure projects, the Dalian Metro fare as the empirical research object. And calculate the price of the Ramsey pricing theory, and put forward suggestions.Through the research analysis, the Ramsey pricing theory is more suitable for urban development and enterprise investment, which has significance for the pricing of infrastructure projects.