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

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

Catherine C. Eckel (Contact Author)

Texas A&M University ( email )

5201 University Blvd.
College Station, TX 77843-4228
United States

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