By Jörg Finsinger (eds.)

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Consumption data for each household are available for each 15-minute interval over the 30 months of its participation in the experiment (which covered the period July 1976-June 1979- approximately 100 million observations). The data available to explain electricity use are of two basic types: timedependent variables, chiefly measures of weather conditions, but also the occurrence of vacations and changes in household appliances and demographic factors; and household-dependent variables, which are effectively constant over the life of the experiment.

T. Loehman and A. B. Whinston, 'A Generalized Cost Allocation Scheme', in S. A. ), Theory and Measurement of Economic Externalities, (New York: Academic Press, 1976), both of which recommend the use of the Shapley value for cost allocation, but of a 'game ' in which the services, or goods are the 'players'. A cost function is homothetic only if at any scale of operation, the costminimizing output proportions are the same. E. E. " in H. , 1981). The tendency of regulators to opt for indirect subsidies has been explored by R.

Von Weizsiicker, 'Telecommunications Policy in West Germany, and Challenges from 26 9. 10. II. 12. 13. 14. 15. Pricing Issues in the Public Sector Technical and Market Development', forthcoming in Zeitschrift [iir National Okonomie. L. Billera and D. Heath, 'A Unique Procedure for Efficient Allocation of Shared Costs', Technical Report # 430, School of Operations Research and Industrial Engineering, Cornell University, July, 1979. It is related to similar Shapley value results of earlier work by S.

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