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Comparative statics of monopoly pricing

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Author Info

  • Tim Baldenius

    ()
    (Graduate School of Business, Columbia University, New York, NY 10027, USA)

  • Stefan Reichelstein

    ()
    (Haas School of Business, University of California at Berkeley, Berkeley, CA 94720, USA)

Abstract

When consumers' willingness-to-pay increases by a uniform amount, the change in the resulting monopoly price is generally indeterminate. Our analysis identifies sufficient conditions on the underlying demand curve which predict both the sign and the magnitude of the resulting price change.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 16 (2000)
Issue (Month): 2 ()
Pages: 465-469

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Handle: RePEc:spr:joecth:v:16:y:2000:i:2:p:465-469

Note: Received: 22 April 1998; revised version: 29 March 1999
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Web page: http://link.springer.de/link/service/journals/00199/index.htm

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Related research

Keywords: Monopoly pricing; Comparative statics; Log-concavity.;

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Cited by:
  1. Bruno Strulovici & Thomas Weber, 2010. "Generalized monotonicity analysis," Economic Theory, Springer, vol. 43(3), pages 377-406, June.
  2. Lapan, Harvey E. & Moschini, GianCarlo, 2009. "Quality Certification Standards in Competitive Markets: When Consumers and Producers (Dis)Agree," Staff General Research Papers 13048, Iowa State University, Department of Economics.
  3. Simon GB Cowan & Simon Cowan, 2004. "Demand shifts and imperfect competition," Economics Series Working Papers 188, University of Oxford, Department of Economics.
  4. Arghya Ghosh & Alberto Motta, 2011. "Outsourcing with Heterogeneous Firms," Discussion Papers 2011-09, School of Economics, The University of New South Wales.
  5. Alexander Saak, 2007. "A note on the value of public information in monopoly," Economic Theory, Springer, vol. 33(2), pages 369-379, November.

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