Why firms resist peak load pricing under cost of service regulation?

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter12: Government And Product Markets: Antitrust And Regulation
Section: Chapter Questions
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Why firms resist peak load pricing under cost of service regulation?

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There has been a sharp contrast in peak versus off- peak pricing between US and other western countries. Rate of return regulated firms would resist using peak – load pricing strategy. In many countries, peak load pricing is well developed in areas like telephone, electricity and other public utility industries.

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