A General Model of Customer-Class Pricing
5 Pages Posted: 12 Jul 2011
Date Written: May 11, 1985
Abstract
A theory of utility customer-class pricing is developed, and a firm's pricing incentives under various objectives are derived. Rate of return regulation is shown to motivate non-optimal prices in an output counterpart to the Averch-Johnson effect.
Suggested Citation: Suggested Citation
Eckel, Catherine C., A General Model of Customer-Class Pricing (May 11, 1985). Economics Letters, Vol. 17, pp. 285-289, 1985, Available at SSRN: https://ssrn.com/abstract=1883684
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