The Short-Run Approach to LRMC Pricing for Multiple Outputs with Nondifferentiable Costs

Anthony Horsley and Andrew Wrobel

STICERD - Theoretical Economics Paper Series from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: Using convex calculus, we extend the Wong-Viner Theorem to nondifferentiable costs by equating the capital inputs' rental prices to their profit-imputed marginal values. Thus extended, the short-run approach to LRMC pricing is applied to peak-load pricing with storage.

Keywords: Wong-Viner theorem; multiple outputs; peak-load pricing; energy storage (search for similar items in EconPapers)
Date: 2000-06
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: The short-run approach to LRMC pricing for multiple outputs with nondifferentiable costs (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stitep:393

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