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- Title
Revenue Effects from Changes in a Declining Block Pricing Structure: Reply.
- Authors
Houston, Douglas A.
- Abstract
This article presents the author's reply to the article related to revenue effects from changes in a declining block pricing structure, by Donald E. Agthe. The author says that in his previous article he identified two unique problems of "translating" block price changes into revenues. First, aggregated statistics obscure the different incentives faced by individuals whose endpoint consumption's are in different blocks. Secondly, shifts in the position of endpoint consumption's due to tariff changes are potentially important to revenue prediction. The author says that as Agthe correctly states in his note, there is indeed considerable ambiguity about consumer block location resulting from tariff changes. The author says that afar more important issue for revenue predictions typically will be the within block distribution shifts from price changes. Intrablock distribution shifts are the major concern of the author's 1982 paper; these will generally dominate interblock shifts as a cause of revenue fluctuations.
- Subjects
REVENUE; PRICING; AGTHE, Donald E.; LABOR incentives; BUSINESS cycles; CONSUMPTION (Economics); LAND economics
- Publication
Land Economics, 1985, Vol 61, Issue 1, p81
- ISSN
0023-7639
- Publication type
Article
- DOI
10.2307/3146145