Toward a new system for allocating the cost of capacity.

by Edward B. Berman


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback14 pages $15.00 $12.00 20% Web Discount

A presentation of a new concept of capacity cost. In this system a requirement for an additional unit of capacity does not lead either to no cost if the unit is already available or to the full cost of building an additional unit if it is not already available. The former event implies a cost because it advances the time when it is expected that an additional unit of capacity be constructed. The latter event offers a savings to offset the full cost of constructing a unit of capacity in the form of a probability that the unit now constructed would have been needed for the next generation anyway. (Presented before the Joint Study Group on Resource Allocation Methodology at Menlo Park, California, May 23-25, 1960.) 14 pp.

This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.