Costing and Pricing for Old and New Customers

Public Utilities Fortnightly, Vol. 198, No. 9, April 1982

5 Pages Posted: 31 Mar 2013

See all articles by Steve H. Hanke

Steve H. Hanke

Johns Hopkins University - Department of Economics

J. Wenders

Independent

Date Written: 1982

Abstract

The purpose of this article is to analyze the economics of charging new customers more than old ones. We use urban water industry to illustrate many of our arguments. However, our analysis applies to all utilities. We begin with a general discussion of the economic concept of costs and their relationship to pricing. We then apply this concept to the problem of determining the costs of service for old and new customers.

Suggested Citation

Hanke, Steve H. and Wenders, J., Costing and Pricing for Old and New Customers (1982). Public Utilities Fortnightly, Vol. 198, No. 9, April 1982 . Available at SSRN: https://ssrn.com/abstract=2241733

Steve H. Hanke (Contact Author)

Johns Hopkins University - Department of Economics ( email )

3400 Charles Street
Baltimore, MD 21218-2685
United States
410-516-7183 (Phone)
410-516-8996 (Fax)

J. Wenders

Independent

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