Average Cost and Marginal Cost Pricing in Marshall: Textual Analysis and Interpretation
نویسنده
چکیده
This paper proposes a textual analysis of Marshall’s theory of firm pricing behavior under competitive conditions. It considers to what extent average cost and marginal cost pricing rules characterize Marshall’s competitive partial equilibrium, and it shows that the two rules differ for origins and can be reconciled only with great difficulty in a general equilibrium framework.
منابع مشابه
Improving Long Run Marginal Cost based Pricing along with Extended Benefit Factor method for Revenue Reconciliation of Transmission Network in Restructured Power System
Abstract : There are several methods to cover the costs of a transmission system and distribution networks. These methods are divided into either incremental or marginal approaches, which can be either long-term or short-term. The main difference between the incremental and marginal approach is how to calculate the cost of using the network. In the incremental approach, simulation and in the ma...
متن کاملTransmission Cost Allocation in Restructured Power Systems Based on Nodal Pricing Approach by Controlling the Marginal Prices
This paper presents a method to allocate the transmission network costs to users based on nodal pricing approach by regulating the nodal prices from the marginal point to the new point. Transmission nodal pricing based on marginal prices is not able to produce enough revenue to recover the total transmission network costs. However, according to the previous studies in this context, this met...
متن کاملReactive Power Pricing Simultaneous Using Spot and Bilateral Market Models Considering Opportunity Cost
Reactive power as a utility of ancillary service in restructured environment is supplied by Independent System Operator (ISO). Due to the particular importance of optimal pricing strategy in the power market, the study aims to investigate this problem more closely. To this end, first the problems of restructuring, reactive power generation and its associated costs thereof were reviewed and diff...
متن کاملPrice Spikes Reduction with EDRP Program
With the development of deregulated power systems and increase of prices in some hours of day and increase fuel price, demand response programs were noticed more by customers. demand response consists of a series of activities that governments or utilities design to change the amount or time of electric energy consumption, to achieve better social welfare or some times for maximizing the benefi...
متن کاملروش نوین قیمتگذاری هزینۀ نهایی بلندمدت برای جبران کمبود درآمد شبکۀ انتقال در سیستم قدرت تجدید ساختارشده
The long-run incremental and marginal pricing are two different approaches for pricing transmission and distribution networks usage. The main difference between these two methods is to the way the cost of using the network is calculated. In the former approach, simulations are used, and in the latter, sensitivity analysis methods are used to determine the cost. In this paper, a novel analytical...
متن کامل