This paper presents a theory for price-setting in public utilities, of which public goods will be considered a special case. Both public goods and utilities are cases of joint supplies and costs, where a good is to be supplied to and paid for by several users, and any increase in the quantity of...

This paper deals with the problem of pricing in decreasing cost industries that exhibit the peak load phenomenon. Because of decreasing costs, welfare maximizing marginal cost pricing results in deficits. Consequently, other pricing methods such as two-part tariffs are necessary, if deficits are...