Hidden Bibliographic Details
| Other authors / contributors: | Wrobel, Andrew J., 1955- author.
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| ISBN: | 9783319333984
3319333984
9783319333977
3319333976
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| Notes: | Includes bibliographical references (pages 192-195).
Print version record.
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| Summary: | The authors present a new formal framework for finding the long-run competitive market equilibrium through short-run equilibria by exploiting the operating policies and plant valuations. This "short-run approach" develops ideas of Boiteux and Koopmans. Applied to the peak-load pricing of electricity generated by thermal, hydro and pumped-storage plants, it gives a sound and practical method of valuing the fixed assets--in this case, the river flows and the geological sites suitable for reservoirs. Its main mathematical basis is the producer's short-run profit maximization programme and its dual; their solutions have relatively simple forms that can greatly ease the fixed-point problem of solving for the general equilibrium. Since the optimal values (profit and cost functions) are usually nondifferentiable--this is so when there are joint costs of production such as capacity constraints--nonsmooth calculus is employed to resolve long-standing discrepancies between textbook theory and industrial reality by giving subdifferential extensions of basic results of microeconomics, including the Wong-Viner Envelope Theorem.--
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| Other form: | Print version: Short-run Approach to Long-run Equilibrium in Competitive Markets. [Place of publication not identified] : Springer Verlag 2016 9783319333977
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| Standard no.: | 10.1007/978-3-319-33398-4
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