Public utility pricing under risk: the case of self-rationing

Journal Article · Fri Dec 01 04:00:00 EST 1978 · Am. Econ. Rev.; (United States)

OSTI ID:6470598

Panzar, J C; Sibley, D S

A framework of optimal pricing decisions combined with simple load management is designed for a public utility self-rationing strategy that will optimize prices under risk and improve on other schemes in the literature. This approach has the advantages of not resorting to restrictive assumptions, allows the firm to accomplish solvency without relying on additional schemes, avoids the difficulty of excess demand, and requires minimum information about consumer preferences. The authors recommend further research that includes multiple periods, analyzes more flexible and more sophisticated techniques, and that can be extended to cover peak-load pricing. 15 references. (DCK)

• OSTI ID: 6470598
• Journal Information: Am. Econ. Rev.; (United States), Journal Name: Am. Econ. Rev.; (United States) Vol. 68:5; ISSN AERNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
ALLOCATIONS
BEHAVIOR
CHARGES
CONSUMER PROTECTION
ECONOMETRICS
ECONOMIC ANALYSIS
ECONOMIC POLICY
ECONOMICS
ENERGY DEMAND
ENERGY SUPPLIES
LOAD MANAGEMENT
MANAGEMENT
OPTIMIZATION
POWER DEMAND
POWER GENERATION
PUBLIC UTILITIES
RATE STRUCTURE