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

Horsley, Anthony and Wrobel, Andrew J. (2000) The short-run approach to LRMC pricing for multiple outputs with nondifferentiable costs. TE (393). Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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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.

Item Type: Monograph (Discussion Paper)
Official URL: http://sticerd.lse.ac.uk
Additional Information: © 2000 the authors
Divisions: Economics
STICERD
Subjects: H Social Sciences > HB Economic Theory
JEL classification: D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D58 - Computable and Other Applied General Equilibrium Models
D - Microeconomics > D4 - Market Structure and Pricing > D46 - Value Theory
L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity
Sets: Collections > Economists Online
Departments > Economics
Research centres and groups > Suntory and Toyota International Centres for Economics and Related Disciplines (STICERD)
Research centres and groups > Computational, Discrete and Applicable Mathematics@LSE (CDAM)
Date Deposited: 12 Jul 2008 11:50
Last Modified: 25 Jun 2020 23:17
URI: http://eprints.lse.ac.uk/id/eprint/19338

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