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Nobel Laureates

Space-Time Pricing for Public Utilities


Volume: Volume 5, No. 1

Issue: Spring 1974

Pages: pp. 187-195

Authors: John Craven

Title: Space-Time Pricing for Public Utilities

Abstract: This paper presents a model of pricing for public utilities where demand varies with space, rather than with time. After different policies regarding zoning are accounted for, a model integrating the spatial and temporal models is outlined to permit an examination of the interaction of peak demands and zoning. Special assumptions on costs, capacity constraints, and the nature of the objective function are made.


JEL Classification

Regulation of Public Utilities (6130)
Microeconomics Theory of Firm and Industry under Imperfectly Competitive Market Structures (0226)