An Examination of Price Discrimination and Internal Subsidization by Electric Utilities

Primeaux, Walter J.; Nelson, Randy A.

doi:10.2307/1057063

Cited by 34 publications

(12 citation statements)

References 13 publications

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“…The results of the test on non-nuclear utilities were quite different. Ramsey pricing could not he rejected in the nonnuclear sample, and the industrial class appeared to receive slightly favorable treatment, consistent with results of many recent studies (see, for example, Primeaux and Nelson, 1980;Nelson, 1982;and Hayashi, Sevier, and Trapani, 1985). 8.…”

Section: Discussionsupporting

confidence: 84%

Pricing in the nuclear power industry: Public or private interest?

1992

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Abstract. This paper tests empirically the Ramsey version of the public-interest theory of regulation by examining the pricing practices in the nuclear power industry, using a 1985 cross-sectional sample of 40 electric utilities. Other researchers have avoided this segment of the industry because of difficulties with nuclear fuel data, or perceived differences in the underlying production function. We show that regulators respond to political influences according to the Stigler-Peltzman version of regulation and that Ramsey pricing cannot be validated, at least for the nuclear segment of the electric power industry.

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Section: Discussionsupporting

confidence: 84%

Pricing in the nuclear power industry: Public or private interest?

1992

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“…Mann (1977) has studied the effects of internal subsidization in the municipally owned water supply industry and has found that such practices entail substantial allocative and distributive effects. Hollas and Friedland (1980) and Primeau and Nelson (1980) have studied the municipally owned and privately owned electric utility industries respectively, and have found that the process of regulation results in internal subsidization in each case. Taking this research program one step further, Nelson (1980) has examined the effects of internal subsidization on enterprise efficiency.…”

Section: Introductionmentioning

confidence: 99%

Utility profits, fiscal illusion, and local public expenditures

DiLorenzo

1982

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“…Primeaux and Nelson (1980) found that residential-and commercialclass customers have price-to-marginal-cost ratios significantly above those of industrial-class customers. Nelson (1982) used the same sample and could not reject the hypothesis these rates were second-best Ramsey efficient.…”

Section: Introductionmentioning

confidence: 95%