The short-run approach to LRMC pricing for multiple outputs with nondifferentiable costs

Horsley, Anthony; and Wrobel, Andrew J. (2000) The short-run approach to LRMC pricing for multiple outputs with nondifferentiable costs. [Working paper]

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Using convex calculus, we extend the Wong-Viner Theorem to nondifferentiable costs by equating the capital inputs' rental prices to their profit-imputed marginal values. Thus extended, the short-run approach to LRMC pricing is applied to peak-load pricing with storage.

Item Type	Working paper
Keywords	Wong-Viner theorem; multiple outputs; peak-load pricing; energy storage
Departments	Economics STICERD
Date Deposited	12 Jul 2008 11:50
URI	https://researchonline.lse.ac.uk/id/eprint/19338