040358 KU Principles of Public Utility Management (Theory) (MA) (2021W)

The aim is to provide students with a comprehensive basic understanding of public sector enterprises. In order to achieve this, participants will be made familiar with those specifics of public sector enterprises that are of particular importance for their management. Participants get to know concepts that enable them to analyse these enterprises and to understand better how they work.

First, students are introduced to the cost concepts which are central to the public sector (e.g., economies of scale, economies of scope, cost complementarities, subadditivity). Then, the notion of cross-subsidisation is considered. Among other things, concepts of cross-subsidisation based on cost accounting and co-operative game theory are presented. It will also be discussed under which conditions the different approaches can be used in a meaningful way. Finally, the pricing policy of public sector enterprises is dealt with. As part of this topic, the types of tariffs relevant to public sector enterprises are presented and analysed, in particular Ramsey prices, two-part tariffs, block-rate tariffs, optional tariffs and peak-load tariffs.

The essential content is conveyed by the tutor. This does not take the form of a monologue, but rather a dialogue that includes questions, answers to questions, comments and contributions to the discussion from all participants. Communication takes place online in the form of "Zoom" video conferences.