A Simple Public Good Pricing Policy

ebook

By Hak Choi

cover image of A Simple Public Good Pricing Policy

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Utility companies are monopolistic, but they must produce at full capacity. Therefore, they are unable to pursue maximum profits by textbook standards. Also, when faced with peak and off-season demand, many ot them choose to implement price differentiation. Were it not for their exclusive position, such behavior would be self-destructive. This book devises a simple utility pricing policy that allows full capacity production, prevents bankruptcies, regulates peak and off-peak demand, and ensures reasonable profits.

A Simple Public Good Pricing Policy