Public Utility Pricing and Capacity Choice with Stochastic Demand

Laurent David (), Michel Breton () and Olivier Merillon ()
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Laurent David: GDF Suez, Direction de la Stratégie et du Développement Durable
Michel Breton: GREMAQ, and IDEI, Manufacture des tabacs, Aile JJ Laffont
Olivier Merillon: GDF Suez E&P, Département Acquisitions

A chapter in Social Ethics and Normative Economics, 2011, pp 57-99 from Springer

Abstract: Abstract This article is a companion piece to David et al. (2011). In that article, we explored Serge Kolm’s contributions to theoretical public economics from an historical perspective, covering a rather general range of topics and specifications. Here, in contrast, we concentrate on the implications for pricing and capacity choice of a specific aspect of the economic environment often encountered by public sector managers and regulators: the uncertainty attached to the demand for the good(s) and service(s) produced by a public utility. Following an early article by Boiteux (see Boiteux 1951), Kolm (1970, 1971) has made important contributions to this issue.

Keywords: Marginal Cost; American Economic Review; Aggregate Demand; Optimal Price; Public Utility (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:spr:stcchp:978-3-642-17807-8_3

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DOI: 10.1007/978-3-642-17807-8_3

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