Doucet, Joseph A; Roland, Michel - In: Journal of Regulatory Economics 5 (1993) 1, pp. 91-100
In a recent issue of this journal, Woo (1990) suggests a mechanism to improve on a pricing scheme initially proposed by Panzar and Sibley (1978). In this paper, we analyze Woo's mechanism. Woo claims that by activating rationing fuses only when total demand reaches system capacity, the problem...