A discriminating monopolist model of natural gas markets over the period 1960–1966

This paper presents estimates of what a monopoly would set natural gas prices at in the inter- and intra-state markets of the United States over the period 1960–1966. The predictions are accurate but not perfect. This paper cannot conclusively prove that price setting in these markets was done in this manner, however, due to lack of assumptions on the supply side. The estimates are close enough to be interesting though, and a model of the supply side should be developed.