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Peak-Load Pricing with Quality-Differentiated Demand

Published Date January 21, 2022
Research Type
Authors Charles Adams


This is the fifth in a series of teaching notes on quality-differentiated demand. With an eye on accessibility to undergraduate economics majors, the focus here is on peak-load pricing and highway tolls. Once quality considerations are accounted for, a richer set of insights is derived to guide social planners in deciding optimal levels of traffic flow and tolls.

  Adams, C. F. (2022). Peak-Load Pricing With Quality-Differentiated Demand. The American Economist.