This note formulates the problem of public utility pricing and investment under risk in terms of the "state preference" approach. Price is assumed to be set after, rather than before, demand is observed. The model is more general, and the results are obtained more immediately, than in a previous...

Because of the complex network structure of a telephone system, it is not immediately apparent what constitutes the marginal cost of a telephone call. This paper develops a mathematical programming model based upon the maximization of producers' plus consumers' surplus subject to capacity...

This paper provides explicit characteristics of those two-part tariffs which maximize profit and consumers' plus producer's surplus. The effect of consumption externalities (as in telecommunications systems) is then explored. The characterizations are in terms of elasticities of demand with...

If a monopolist is selling a commodity to consumers who could, if they chose, produce a close substitute, but only after incurring heavy capital investment (we have oil in mind), then the monopolist's optimal limit pricing strategy may involve randomizing prices even though stable prices would...