Marshall And Turvey On Peak Load Or Joint Product Pricing

Cover Marshall And Turvey On Peak Load Or Joint Product Pricing
Marshall And Turvey On Peak Load Or Joint Product Pricing
Paul R Kleindorfer
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Ix. )) or X. =MR. . 1 dx. Iii i i 1 Thus, the fundamental results differ only to the extent that the dual variables have to be regarded as marginal revenues and price set accordingly.
The normative rule presented here will also describe the equilibrium results of a purely competitive decentralized process provided the conditions of production 9 are the same for the public utility monopoly as they are for the competitive industry.
Conclusions The major point of this analysis was to develop a sol
...ution to the peak load 12.
problem where two plants were employed, unlike the one plant case which had been the primary theoretical model of interest until Turvey's recent paper. It was demonstrated how the solution here differed from the one implied by Turvey, where prices were apparently to be set equal to marginal running cost. No simple cost- based solution proved possible. The solution developed here, in this sense, is similar to the early contributions to joint product pricing of Marshall in that demands have to be brought explicitly into the analysis.


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