ABSTRACT
In recent years, the literature on optimal pricing for public utilities has been expanded to include nonuniform pricing policies--that is, pricing schemes wherein the cost of consuming a given amount of the utility's service is not simply proportional to the amount consumed. Originating in the two-part tariff literature (see Coase, 1946, and Feldstein, 1972), it has come to include optimal multipart tariffs (see Faulhaber and Panzar, 1977) and, more generally, continuously varying nonuniform price schedules (see Spence, 1977, and Goldman, Leland, and Sibley, 1977).
