Joint Cost and Price Discrimination: The Problem of Communications Satellites.
An examination of the potential conflict over the pricing of communications satellites. Following a brief description of satellite technology and institutional arrangements for developing and operating a commercial system, the cost structure is analyzed from data on past satellite studies. In light of the analysis a theoretical peak-load pricing model is employed to discuss efficient pricing for satellites. Finally, it is demonstrated that the enterprise is likely to face serious dilemmas concerning its pricing policies because of the various objectives set forth in the Communications Satellite Act.