Peak-Load Pricing with Quality-Differentiated Demand

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. https://doi.org/10.1177/05694345211073504