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Pricing and production in consumer markets where sales depend on production
Stockholm University, Faculty of Social Sciences, The Swedish Institute for Social Research (SOFI).
2017 (English)In: Economics Letters, ISSN 0165-1765, E-ISSN 1873-7374, Vol. 154, 17-19 p.Article in journal (Refereed) Published
Abstract [en]

This paper deals with consumer markets where sales depend on production. Assuming that a firm's sale is proportional to its production, it shows that a price leader will set a price which maximizes its industry's revenues in market's with many small firms, independent of their cost functions.

Place, publisher, year, edition, pages
2017. Vol. 154, 17-19 p.
Keyword [en]
Pricing, Consumer markets, Price leadership, Proportional rationing
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-139965DOI: 10.1016/j.econlet.2017.02.021ISI: 000399851700005OAI: oai:DiVA.org:su-139965DiVA: diva2:1076266
Available from: 2017-02-22 Created: 2017-02-22 Last updated: 2017-05-29Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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