The well-known result that optimal peak load pricing requires only users who utilize plant to capacity to bear any fraction of the capacity costs is shown to result from the technological assumption of the traditional literature and not from the fundamental nature of the peak load problem. When...

When a utility invests in a large discrete increment of capacity, several years may pass before the additional capacity can be fully used, if the utility's customers need to buy major durable goods to be used jointly with the utility's product. For such a period of adjustment, this study derives...

Yellin has reviewed the Reactor Safety Study (WASH-1400, or Rasmussen Report) published by the Nuclear Regulatory Commission and makes several criticisms. I find that some of these criticisms are much overstated. Others, though valid, are mainly criticisms of presentation. To be useful for...

Review of R. de Neufville and J.H Stafford's Systems Analysis for Engineers and Managers and H.M. Wagner's Principles of Operations Research

A simple formula is developed for the valuation of uncertain income streams consistent with rational risk averse investor behavior and equilibrium in financial markets. Applying this formula to the pricing of an option as a function of its associated stock, the Black-Scholes formula is derived...

The revenue-maximizing firm presumably has an internal return requirement that is at least as large as the maximum return permitted by a regulatory agency. In this case, which is the only one that seems economically meaningful, the undercapitalization result of Bailey-Malone holds throughout the...

(no abstract)

This paper develops a model of capacity utilization in an industry where price and entry are regulated. The distinctive feature is that capacity affects waiting time of consumers, and, therefore, influences demand. The result is that capacity utilization, output, and costs are jointly determined...

Book review

This paper tests the hypothesis that members of national securities exchanges have received net benefits from the regulatory activities of the Securities and Exchange Commission. The prices of stock exchange seats are analyzed in time periods of major changes in the regulation of the securities...