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A State Preference Approach to Public Utility Pricing and Investment Under Risk

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  • Stephen C. Littlechild

Abstract

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 formulation.

Suggested Citation

  • Stephen C. Littlechild, 1972. "A State Preference Approach to Public Utility Pricing and Investment Under Risk," Bell Journal of Economics, The RAND Corporation, vol. 3(1), pages 340-345, Spring.
    • Handle: RePEc:rje:bellje:v:3:y:1972:i:spring:p:340-345
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    Cited by:

    1. David P. Baron & Robert Taggart Jr., 1978. "Regulatory Pricing Policies and Input Choices Under Uncertainty," Discussion Papers 315, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Kalu, Timothy Ch. U., 1995. "A uniform profit margin policy and its effects on mineral producing firms The case of the oil industry," Resources Policy, Elsevier, vol. 21(1), pages 61-72, March.
    3. Mirucki, Jean, 1980. "Vérification des conditions d'efficacité dans la production chez Bell Canada [Checking the conditions of efficient production in Bell Canada]," MPRA Paper 30147, University Library of Munich, Germany, revised Jun 1980.
    4. Mirucki, Jean, 1980. "Comportement de l'entreprise réglementée: étude de l'hypothèse Averch-Johnson [Behavior of the Regulated Firm: A Study of the Averch-Johnson Hypothesis]," MPRA Paper 27669, University Library of Munich, Germany, revised 1982.

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