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Nobel Laureates

A State Preference Approach to Public Utility Pricing and Investment Under Risk


Volume: Volume 3, No. 1

Issue: Spring 1972

Pages: pp. 340-345

Authors: Stephen C. Littlechild

Title: A State Preference Approach to Public Utility Pricing and Investment Under Risk

Abstract: This note formulates the problem of public utility pricing and investment under risk in terms of the "state preference" approach. Price is assumed to be set after, rather than before, demand is observed. The model is more general, and the results are obtained more immediately, than in a previous formulation.