This working paper by Timothy Brennan examines the persistence of volumetric pricing, a pricing strategy in which the price of a good or service is based on the quantity consumed. The author notes that volumetric pricing is often used in industries such as electricity, water, and telecommunications, and that it can have both benefits and drawbacks. The paper discusses the potential for volumetric pricing to promote efficiency and competition, as well as the potential for it to lead to higher prices for consumers. The author also examines the role of government regulation in shaping the use of volumetric pricing in different industries. Overall, the paper provides a comprehensive analysis of the persistence of volumetric pricing and its implications for policy makers and industry stakeholders.
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