An Analysis of Fully Distributed Cost Pricing in Regulated Industries
This paper examines the economic consequences of allocating common costs by (1) gross revenues, (2) directly attributable costs, and (3) relative output levels (such as ton-miles) to determine fully distributed cost prices for regulated firms. The analysis characterizes FDC tariffs by examining the...
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| Veröffentlicht in: | Bell J. Econ.; (United States) 1980-04, Vol.11 (1), p.182-196 |
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| container_title | Bell J. Econ.; (United States) |
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| creator | Braeutigam, Ronald R. |
| description | This paper examines the economic consequences of allocating common costs by (1) gross revenues, (2) directly attributable costs, and (3) relative output levels (such as ton-miles) to determine fully distributed cost prices for regulated firms. The analysis characterizes FDC tariffs by examining the nature of the economic inefficiency associated with the rules and explains how opportunities for entry by unregulated firms might change if Ramsey optimal pricing were used instead of FDC pricing. |
| doi_str_mv | 10.2307/3003407 |
| format | Article |
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| identifier | ISSN: 0361-915X |
| ispartof | Bell J. Econ.; (United States), 1980-04, Vol.11 (1), p.182-196 |
| issn | 0361-915X 0741-6261 2326-3032 1756-2171 |
| language | eng |
| recordid | cdi_proquest_journals_236472281 |
| source | RePEc; Business Source Complete; Periodicals Index Online; Jstor Complete Legacy |
| subjects | 290200 - Energy Planning & Policy- Economics & Sociology 293000 - Energy Planning & Policy- Policy, Legislation, & Regulation ALLOCATIONS Capital costs Commissions COST Cost allocation Cost efficiency Costing Costs ECONOMIC ANALYSIS Economic costs Economic profit ECONOMICS EFFICIENCY Elasticity of demand ENERGY PLANNING, POLICY AND ECONOMY INDUSTRY Marginal cost pricing Marginal costs Market prices Methods PRICES Pricing Rate setting Regulated industries REGULATIONS Regulatory agencies TARIFFS |
| title | An Analysis of Fully Distributed Cost Pricing in Regulated Industries |
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