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Peak-Load Pricing With Quality-Differentiated Demand

Author

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  • Charles F. Adams

Abstract

This is the fifth in a series of teaching notes on quality-differentiated demand. With an eye on accessibility to undergraduate economics majors, the focus here is on peak-load pricing and highway tolls. Once quality considerations are accounted for, a richer set of insights is derived to guide social planners in deciding optimal levels of traffic flow and tolls. JEL Classifications: L0, D0

Suggested Citation

  • Charles F. Adams, 2022. "Peak-Load Pricing With Quality-Differentiated Demand," The American Economist, Sage Publications, vol. 67(2), pages 298-303, October.
    • Handle: RePEc:sae:amerec:v:67:y:2022:i:2:p:298-303
    DOI: 10.1177/05694345211073504
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    More about this item

    Keywords

    Quality-differentiated demand; peak-load; pricing;
    All these keywords.

    JEL classification:

    • L0 - Industrial Organization - - General
    • D0 - Microeconomics - - General

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