The issue of peak pricing is one which has often been raised as part of the marginal-cost-pricing controversy; it illustrates well some of the basic principles of price policy, as well as some pitfalls which exist in its application, and this chapter is in some ways an extension of the themes introduced in Chapter 7.
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Suggestions for Further Reading
- HAROLD HOTELLING, ‘The General Welfare in Relation to Problems of Taxation and of Railway and Utility Rates’, Econometrica, vol. 6 (1938).Google Scholar
- H. S. HOUTHAKKER, ‘Electricity Tariffs in Theory and Practice’, Economic Journal, vol. 61 (1951).Google Scholar
- J. R. NELSON (ED.), Marginal Cost Pricing in Practice (Englewood Cliffs, N.J.: Prentice-Hall, 1964).Google Scholar
- RALPH TURVEY, Optimal Pricing and Investment in Electricity Supply (London: Allen & Unwin, 1968).Google Scholar
- O. E. WILLIAMSON, ‘Peak-load Pricing and Optimal Capacity under Indivisibility Constraints’, American Economic Review, vol. 56 (1966).Google Scholar