Tag: Peak load pricing

Peak-load pricing

Peak-load pricing also involves charging different prices at different points in time. Rather than capturing consumer surplus, however, the objective is to increase economic efficiency by charging consumers prices that are close to marginal cost. For some goods and services, demand peaks at particular times—for roads and tunnels during commuter rush hours, for electricity during late …

Get more stuffs like this
in your inbox

Subscribe to get updates on forthcoming posts to your email inbox.

Thank you for subscribing.

Something went wrong.