The short-run approach to LRMC pricing for multiple outputs with nondifferentiable costs

Anthony Horsley and Andrew Wrobel

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

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)
JEL-codes: D24 D46 D58 L94 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2000-06
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Citations: View citations in EconPapers (3)

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http://eprints.lse.ac.uk/19338/ Open access version. (application/pdf)

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:ehl:lserod:19338

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