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The Effect of Profit Regulations on Combined Two‐Part and Peak‐Load Pricing *
Author(s) -
KIM PANGRYONG
Publication year - 1997
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1997.tb00997.x
Subject(s) - microeconomics , profit (economics) , economics , welfare , peak load , industrial organization , market economy , engineering , automotive engineering
Although it is known that two‐part tariffs and peak‐load pricing are adopted simultaneously by many regulated public utilities, the effects of regulation on both price schedules have normally been analyzed separately. This paper examines the effect of alternative forms of profit regulation on the rate structure and welfare under combined two‐part and peak‐load pricing.