Comparative Statics of Monopoly Pricing

Posted: 14 Sep 2000

See all articles by Tim Baldenius

Tim Baldenius

Columbia Buiness School

Stefan J. Reichelstein

Stanford University - Stanford Graduate School of Business; CESifo (Center for Economic Studies and Ifo Institute)

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.

Keywords: monopoly pricing, comparative statics, log-concavity

JEL Classification: D42, L12

Suggested Citation

Baldenius, Tim and Reichelstein, Stefan J., Comparative Statics of Monopoly Pricing. Economic Theory, Vol. 16, No. 2, 2000. Available at SSRN: https://ssrn.com/abstract=236700

Tim Baldenius (Contact Author)

Columbia Buiness School ( email )

3022 Broadway
New York, NY 10027
United States

Stefan J. Reichelstein

Stanford University - Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States
650-736-1129 (Phone)
650-725-7979 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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