The Economics of Public Utilities

Public utilities supply a set of goods and services that are central to the workings of a modern economy. Their importance in the economy's structure is matched by the interest and complexity of the problems they present for economic analysis. This two-volume set includes the most important and influential papers in the development of public utilities economics. It includes early contributions on marginal cost pricing as well as its later extensions dealing with peak loads, financial constraints, indivisibilities, uncertainty, and non linear tariffs. The selection includes a balance between partial and general equilibrium analysis. More recent game theoretic approaches to some of the classic problems are also included. Three important types of public utility - electricity, telephones and rail transport - are covered in some depth. This important collection will be a valuable reference source to researchers and policymakers alike.