Author(s): Wang Xieyong, Song Yanli, Sun Peng, Shi Jianpeng
Pages: 74-78
Year: 2014 Issue:  3
Journal: Economy and Management
Keyword:  Demand in household; Ladder pricing; Compensation mechanism; Logistic model;
Abstract: Ladder pricing policy of demand in household is being implemented gradually, so the compensation mechanism of it should be constructed early. Taking the profit of water company as the objective function, water rate, full-cost and compensation from government as key factors, the compensation mechanism model of ladder pricing with logistic applied into demand in households was made. Taking variation of demand in household as independent variable, the relationship between water price variation and water-saving awareness was established according to the ideology of logistic. All of those were used to find the relationship between profit of Water Supply Company and variation of demand in household, which can calculate the profit of Water Company at last. All that will be an theoretical foundation for the changing of water price.