Economics of Pricing
October 28 - December 8, 2013
What drives costs? How do customers react to prices? What impacts do subsidies have?
The course Economics of Pricing is designed to introduce engineers, lawyers, and other professionals to the conceptual framework for designing price structures in infrastructure industries. When implemented, these rate designs can promote efficiency and financial sustainability. In addition, the course will show how to minimize the efficiency impacts of cross-subsidies when several customers in separated markets are purchasing one or more products from a network. This foundational material will help decision-makers develop rate structures that promote financial sustainability, while encouraging efficiency and fairness.
Participants built their foundation for difficult utility pricing decisions with our new online course Economics of Pricing. They learned from experts and exchanged experiences and best practices with peers through the latest in internet technology.
At the conclusion of the course, participants were able to:
Outline the principles of microeconomics as they apply to the pricing of infrastructure services
Explain the economic foundations for prices that promote efficiency, as reflected in consumer valuations and producer opportunity costs
Contrast pricing in competitive and monopolized markets
Describe pricing techniques utilized in infrastructure industries, including price discrimination, multi-part pricing, peak-load pricing, and multi-product pricing
Compare the strengths and limitations of different costing methodologies
Evaluate the effectiveness of rate structures in achieving corporate and regulatory objectives