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Mercati di clientela con avversione al rischio

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  • Maria Cristina Colorito

Abstract

In the traditional models of customer markets it can be identified a price rigidity due to the existence of a discontinuity in the firm’s marginal revenue curve. This paper presents a microeconomic model that combines the hypothesis of a risk-averse pricesetting firm with the customer markets analysis. We show that, when a shock to marginal cost moves marginal cost curve outside the discontinuity range of marginal revenue curve, the adjustment of price under risk aversion tends to be more sluggish than under risk neutrality and a sufficiently great risk aversion implies price inertia.

Suggested Citation

  • Maria Cristina Colorito, 2009. "Mercati di clientela con avversione al rischio," Working Papers 2, Doctoral School of Economics, Sapienza University of Rome.
    • Handle: RePEc:dsc:wpaper:2
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    File URL: http://phdschool-economics.dse.uniroma1.it/website/WorkingPapers/ColoritoWP2.pdf
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    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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