Pricing with the Help of the Choke Price

16 Pages Posted: 8 Dec 2010 Last revised: 16 Jan 2011

See all articles by Raymond De Bondt

Raymond De Bondt

Catholic University of Leuven (KUL)

Date Written: January 12, 2011

Abstract

This paper draws the attention to some simple formulas to calculate equilibrium prices in case a linear demand is reasonable and information about the choke price is available. It can serve to convince analysts that even with very limited data and no algebra, powerful back of the envelope calculations are available. In addition it helps to clarify tendencies of price elasticity with changing demand.

Keywords: Pricing, Choke price

JEL Classification: D42

Suggested Citation

De Bondt, Raymond, Pricing with the Help of the Choke Price (January 12, 2011). Available at SSRN: https://ssrn.com/abstract=1721505 or http://dx.doi.org/10.2139/ssrn.1721505

Raymond De Bondt (Contact Author)

Catholic University of Leuven (KUL) ( email )

Oude Markt 13
Leuven, Vlaams-Brabant
Belgium

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
115
Abstract Views
1,002
Rank
446,195
PlumX Metrics