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Econometrica Vol. 53 No. 3 1985

Capacity Pricing

Shmuel S. Oren; Stephen A. Smith; Robert Wilson

Abstract

[We study the problem of optimal pricing for a bundle of services characterized by two attributes (e.g., quantity and quality) and subject to capacity limitations or peakloading. An application is to services that take the form of a load-duration curve. Using separability assumptions on the demand and cost functions, we derive the optimal pricing policy for a monopolist seller. An example is solved completely.]

DOI
10.2307/1911654
Volume
53
Issue
3
Pages
545
Sources
bibtex:phds-export.bib crossref openalex

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