But....

Were I to own a property with an end of garden mooring, where the only access 
to said mooring is via my property, that mooring only exists for my own use. It 
is not available to anyone else who may want to use it. I am not consuming a 
product where there is a limited supply. Indeed there is no difference to the 
limited supply regardless of whether I own a boat and use my own mooring or I 
don't own a boat and that potential mooring remains unused. Therefore the cost 
of mooring by me on my EOG mooring to BW is zero.



----- Original Message ----
From: Adrian Stott <[EMAIL PROTECTED]>
To: [email protected]
Sent: Thursday, 25 September, 2008 9:17:19
Subject: [canals-list] Re: Working narrowboats to pay the £50 "broad" beam 
surcharge?! (XP)

<snip>

"Iain Street" <[EMAIL PROTECTED]>
wrote:

>If the cost of a boat navigating a km is £nil, what is the cost of mooring?

The two situations are very different, so different economic rules
apply to them.

1. Where by consuming a product (particularly one for which there is a
large potential over-supply) a consumer imposes costs on the
(monopoly) supplier, it is reasonable for the user to pay a cost-plus
price for it.

2. Where a consumer consumes a product in limited supply (such as
moorings), then it is reasonable for him to pay the market-clearing
price for it.  Usually, if that price is higher than the cost of
providing additional supply, that supply will be created.  For
moorings, the cost of providing additional ones is actually rather
high, as BW found when it created the basin at Llangollen.

<snip>

Adrian


      

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