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http://dx.doi.org/10.5370/JEET.2013.8.1.040

A Study on Reliability Differentiated Pricing of Firm Capacity  

Kim, Balho H. (School of Electrical Engineering, HONGIK University)
Publication Information
Journal of Electrical Engineering and Technology / v.8, no.1, 2013 , pp. 40-45 More about this Journal
Abstract
It is known that Reliability Differentiated Pricing (RDP) can improve the efficiency and benefits of consumers and producers. This paper examines the long-run social welfare maximization problem of the utility and presents a long-term reliability differentiated prices for firm capacity, based on customer outage costs. Then the applicability of the proposed pricing scheme is verified with a case study.
Keywords
Reliability Differentiated Pricing (RDP); Outage cost; Firm capacity;
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