English, Article, Journal or magazine article edition: The Simple Analytics of Peak-Load Pricing Ted Bergstrom; Jeff Mackie-Mason

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Bookmark: http://trove.nla.gov.au/version/189947
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The Simple Analytics of Peak-Load Pricing
Author
  • Ted Bergstrom
  • Jeff Mackie-Mason
Physical Description
  • preprint
Notes
  • Consider a public utility that offers its service at two different times. We study the effects of a change from uniform pricing throughout the day to peak-load pricing. We show that for a utility constrained to operate with a fixed rate of return on capital, the introduction of peak-load pricing can plausibly reduce the price of the service {\it both\/​} in peak and off-peak times. We also find that peak-load pricing can lead to either greater or smaller capacity than uniform pricing. We find a simple criterion for determining whether a particular individual gains or loses from peak -load pricing.
  • RePEc:wop:michec:_035
Language
  • English
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