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 School of Economics and Political Science, 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
Uncontrolled Keywords:	Wong-Viner theorem; multiple outputs; peak-load pricing; energy storage
Library of Congress subject classification:	H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System:	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)
Rights:	http://www.lse.ac.uk/library/rights/LSERO.htm
Identification Number:	393
URL:	http://eprints.lse.ac.uk/19338/

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