Document Type
Article
Publication Date
1922
Abstract
To discuss all of the controlling elements in rate making would be entirely beyond the scope of this paper. Many of these elements have been the subject of a voluminous and exhaustive literature with which most of you are probably familiar. The cost of service doctrine, with the determination of value, the analysis and apportionment of expenses and the more or less involved assignment of costs which its application entails has been so fully discussed that there is little that I can add within the limits of this paper. It has seemed to me, however, that it might be worth while to discuss with you some of the limitations upon the cost of service doctrine. These limitations may be discussed generally as limitations imposed by the value of the service. In a sense the question of the value of the service is the old doctrine of what the traffic will bear under a different name. Rate and price fixing will always break down when it reaches a point where it restricts the use of the product. This point may of course be somewhat less than the monopoly price but when this point is reached it is not long before the evidence of it is unmistakable.
Relational Format
article
Recommended Citation
Gettle, Lewis E., "Controlling elements in rate making especially the value of service" (1922). Individual and Corporate Publications. 163.
https://egrove.olemiss.edu/acct_corp/163
Comments
Presented before the Annual Joint Convention, Wisconsin Gas Association, Wisconsin Electric Association, Milwaukee, Wisconsin, March 22, 1922